Snap: AR filters drive daily active users to exceed 200 million in 2Q19

According to Snap's 2Q19 financial report, in the second quarter, Snap's revenue increased by 48% year-on-year, and its losses were significantly reduced. Stimulated by AR filters and product improvements, user growth was significant.

Revenue grew 48% to $388 million, faster than the previous quarter

Snap's second-quarter revenue was $388 million, up 48% from $262 million in the same period last year. Snap's second-quarter revenue growth rate reached 48%, higher than 39% in the previous quarter and 44% in the same period last year.

Average revenue per user increased 37% to $1.91

Snap's average revenue per user in the second quarter was $1.91, up 37% from $1.40 in the same period last year. In the past six quarters, Snap's average revenue per user has grown by more than 30%.

Affected by AR filters and product improvements, daily active users increased by 13 million month-on-month to 203 million

In the second quarter, due to the popularity of AR filters such as gender change and age change, as well as the improvement of the Android version experience, the return of new and old users accelerated, driving DAU to 203 million. Among the 13 million growth, the company believes that 7 to 9 million of them are mainly due to the launch of the company's new AR filters, and 4 to 6 million are native growth of the product community.

Snap still has an advantage among young people in the United States, with the company saying that 75% of people aged 13 to 34 in the United States use Snapchat.

Operating costs increased by 13% year-on-year, lower than the revenue growth rate of 48%, and gross profit margin continued to increase

Snap's total costs and expenses in the second quarter were $693 million, up 14% from $620 million in the same period last year. The year-on-year increase in Snap's total costs and expenses in the second quarter was mainly driven by increases in revenue costs, research and development expenses, sales and marketing expenses, and general and administrative expenses.

Among them, revenue cost was US$215 million, higher than US$192 million in the same period last year; R&D expenses were US$236 million, higher than US$203 million in the same period last year; sales and marketing expenses were US$112 million, higher than US$102 million in the same period last year; general and administrative expenses were US$130 million, higher than US$124 million in the same period last year.

Operating losses continue to decline

Snap's operating loss in the second quarter was $305 million, a decrease of $53 million from $358 million in the same period last year. The year-on-year decrease in Snap's operating loss in the second quarter was mainly due to the company's rapid revenue growth in the quarter, which was partially offset by the resumption of growth in total costs and expenses.

Snap's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the second quarter were -$78.7 million, down $90 million from -$169 million in the same period last year.

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