Snap Inc reported that revenue jumped 50% year-on-year during the third quarter of 2019.
Following its latest earnings results, the maker of popular messaging app Snapchat said it had benefitted from an increased focus on advertising technologies during Q3.
The company’s revenue of $446 million beat analyst expectations of $435 million.
The average revenue per user increased 33% to $2.12, marking some of the slowest growth since Snap Inc went public in 2017.
But the company said it was positive that Q4 revenue could reach up to $560 million, beating $390 million in 2018.
Snapchat also noted positive user growth, with daily active users increasing 13% year-on-year to 7 million in Q3. The company now has 210 million daily active users compared to 186 million in Q3 2018.
Aaron Goldman, chief marketing officer at 4C Insights, commented:
“From our point of view, Snap continues to improve its position in the brand playbook. Advertisers using Scope by 4C to manage their Snap Ads in Q3 2019 increased their investments by more than twice what they were spending in Q3 2018. Looking ahead to Q4, there’s a lot for marketers to be excited about on Snap, including the rollout of Dynamic Ads which will take a product catalog and automatically turn it into personalized creative assets.”
Snap CEO Evan Spiegel also commented that the company did not consider TikTok a rival because the popular video app was a key advertising partner of Snapchat.
In the near future, Snap plans to push ahead with plans to bolster the development of its augmented reality features which are already seeing some good interaction from users.