Snapchat is the instant messaging app that came into being in 2017. The company flourished by bringing new and attractive features to the users. Many social media users switched from the U.S based competitor apps to Snapchat. The company released the first-quarter financial results for 2022 which affirmed Snapchat is growing faster than in years and than its fellow competitors Facebook and Twitter. Snapchat’s Q1 Results would be an alarm for its competitors.
At the early stage, 173 million users used to visit the app daily. Over the years the percentage increase in the daily active users (DAUs) was 18 percent. This year there is a 23 percent increase from the last year and now 332 million people use Snapchat on daily basis. The company is showing a huge increase in active users and company profits. Meta, on the contrary, reported its first loss in daily active users last quarter and Twitter’s monetizable active users grew by 2 percent in U.S within the country and 15 percent internationally.
Snapchat’s Q1 Results show that it is growing faster than its rivals
Snapchat is very much concerned about revenues. The company’s revenues increased 38 percent year over year and were marked to $1.06 billion. The company was flourishing and they were about to hit 44 percent growth when Russia invaded Ukraine and many advertisers stopped their advertisement campaigns. A few days back the campaigns resumed but still, the gap has given a negative impact on the company’s quarterly revenue.
The ad revenue couldn’t reach the company’s estimated goal in the third quarter of last year due to Apple’s iOS privacy change. The option Apple provided to its users with a choice to opt-out of off-app tracking compelled users to choose not to hand over personal data to the apps. This impacted the ad business of many platforms.
As far as the product itself is concerned, it is liked and loved by many. Snap has rolled out upgrades to augmented reality (AR) shopping and community-generated AR experiences for local landmarks. Many users are coming towards augmented reality experiences. From 332 million daily active users, 250 million users are engaged with these augmented reality features on daily basis.
The innovative and creative new updates and features by Snapchat are attracting more and more daily users and they are compelled to switch from the competitor messaging apps. This is adding in more huge profits for Snapchat and making it the fastest-growing app all over the world.