Snapchat has experienced its highest user growth in years, according to its latest earnings report. The number of daily active users increased by 23 percent over the same period last year, reaching 293 million. Snap Inc saw its best sales tally since 2004, when it had 22 percent.
There are even more users than Twitter, which recently reported 206 million users in the second quarter.
The company’s overall revenue grew by 116 percent to $982 million, which is its fastest growth rate yet. Twitter and Facebook aren’t even close, at least not at this moment.
Spotlight, a feature similar to TikTok that pays for clips, has also gained popularity, according to the company. Spotlight has seen a 49 percent increase in daily active users, and average daily submissions have tripled.
An important reason for this growth is that pandemic lockdowns have ended, as well as the greatly improved Android app.
According to a previous earnings report, CEO Evan Spiegel stated that “as things opened up in the United States, we saw inflection points in key behaviors like Story posting and Snap Map engagement.” However, the recent surge of COVID-19 cases points to an uncertain third quarter.
Apple’s rollout of iOS 14 has not had too much of a negative impact on the company, which forces developers to request permission from users before tracking their data (often used for advertising). According to Snap’s business officer, Jeremi Gorman, the company actually had relatively high opt-in rates relative to the rest of the industry.
A second goal for Spiegel is to increase engagement even further by implementing an augmented reality platform for the app. A new AR-enabled pair of Spectacles is also unveiled that enables users to try on clothes and accessories using the app.
He added, “Our team is enthusiastic about the progress being made with our augmented reality platform, and we are looking forward to expanding our community and business globally.” Over 200 million Snapchat users use AR on a daily basis, and over 200,000 creators build Lenses for the Snapchat community using Lens Studio.”