Snap appears to be heading for growth again after a period of losses following the redesign of its Snapchat app.
During its latest earnings release, the company revealed that its user base had reached 4 million people worldwide.
Snapchat now has 190 million daily active users, up from 186 million in the previous six months.
Although it’s likely that international user growth contributed to the latest boost, CEO Evan Spiegel said that Snapchat reached a larger number of 13 to 34-year-olds in the US than Instagram.
He added that Snapchat was now reaching 75% of US 13- to 34-year-olds and 90% of 13- to 24-year-olds.
“Snapchat’s user gains in Q1 are a positive sign. After a tough couple of quarters in which worldwide DAUs fell as low as 186 million, Q1 2019’s total DAU figure of 190 million is nearly what it was in Q1 2018. Gaining users has been a struggle for Snapchat in the wake of 2017’s failed redesign and the slow progress on the Android update,” said eMarketer Principal Analyst Debra Aho Williamson.
Snap’s revenue increased 39% to $320.4 million beating expectations. The revenue boost was likely driven by new advertising formats including commercials for its original show content.
Average user revenue increased 39% to $1.68 during the quarter.
“Snapchat’s revenue growth is also a positive sign; in addition to seeing nice gains in North America and Europe, there was substantial growth in ad revenue from outside of those two regions as well,” Williamson added. “The revamped Android app could drive more gains in subsequent quarters if a significant number of people start using this version of Snapchat. A sizeable chunk of the world’s smartphone user base is on Android.”
Snap expects revenues to grow to $360 million in Q2 2019. The company recently expanded Snapchat by adding a dedicated gaming platform, which could eventually help the company to make more money in the future.