The image-sharing company increased revenues by 116 percent, beating analysts’ expectations on several parameters. Nevertheless, the company still does not make money.
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Snap published Thursday night the financial report for the second quarter.
The company reports revenues of 982 million dollars, or around 8.7 billion kroner. That’s a jump from $ 454.2 million in the second quarter of last year.
This gives an income increase of 116 percent on an annual basis for the tech company, and the strongest growth in four years.
In comparison, analysts had estimated a turnover of 846.94 million dollars, and the share rises above 13 percent in trading on Wall Street.
For a growth company like Snap, one of the key values is how many active daily users the company has. The number of daily users ended at 293 million, up from 238 million in the same period last year. The consensus among analysts was 290.72 million users.
Despite the revenue jump, it still costs to grow for Snap, and the company still does not make money, the quarterly report shows. The last three months have resulted in a deficit of 152 million dollars, or around 1.3 billion kroner.
This is a sharp deterioration compared to the adjusted deficit of two million dollars in the first quarter. In advance, analysts expected a loss of 21 million dollars, or around 185 million kroner.
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