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Snap CEO Evan Spiegel said softening coronavirus blockages would increase participation on its platform as users coordinate more and more with socialization as the company posted bumper first-quarter results .
Sales, the parent of Snapchat’s messaging app, rose 66% year-over-year to $ 770 million in the first quarter of last year, exceeding analysts ’expectations of $ 742 million, it said Thursday. Daily active users reached 280 million, up 22%.
“We are optimistic about the engagement trends we are seeing as the world begins to open up,” Spiegel said, adding that as restrictions in the U.S. eased in February, the company saw “points turning “with users who publish a short video” Stories “about their lives and using the Snap Map function to share their whereabouts and activities.
“More recently, we saw an increase in the rate of new friendships and two-way communications on Snapchat in late March, as people have begun to socialize in larger groups,” he added.
The optimistic set of results benefited from delays in privacy changes to Apple’s iOS 14 operating system, which will prohibit app developers from collecting data about iPhone users without their explicit consent in a bomb update that s expects it to be painful for the online ad industry.
The changes were expected to take effect late last year, but will now arrive next week. Snap, who explored frowned upon ways to circumvent the rules according to a Financial Times report, said it was “still unclear” what the long-term impact of the changes would be.
The company led year-over-year revenue growth of between 80 and 85% in the second quarter of the year, despite changes, although it comes from a lower base after the pandemic hit advertising customers of Snap in the second quarter of 2020.
After a troubled 2019, Snap has made a successful shift with investments in its product upgrades and its offering to paying advertisers. In March, Spiegel told a conference that a previous multi-year forecast of the company with revenue growth of at least 50% was an achievable baseline even with additional growth in the number of users or commitment.
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