Social media firms Twitter and Snap are continuing to add users even as pandemic restrictions ease.
Analysts had predicted Snapchat would have more daily Snapchat users than it did.
Twitter also reported that it had passed 200 million daily active users viewing ads on the platform during the same time period. This is an increase of 11% over the previous year.
Revenues for both California-based businesses also increased.
Snap is the mobile app Snapchat. It’s best known for its photo and video “stories”, which disappear within 24 hours. Revenues more than doubled to $982 million (PS713m).
Snap CEO Evan Spiegel stated in a financial update that “our second quarter results reflect broad-based strength in our business as we grew revenue and daily active user at the highest rates ever achieved in four years.”
The net loss for this period was $152m, compared to $326m in 2020.
- Facebook vs Apple: This is the ad tracking dispute heating up
- Snapchat eliminates the controversial speed filter
- Facebook pours fuel on Apple privacy row
Twitter, the microblogging website, reported that sales increased 74% to $1.19bn year-on-year, and generated a profit in excess of $65.7m.
Twitter has never seen advertising revenue surpass $1bn. According to the firm, it has made advertising campaigns more accessible for medium and small-sized companies.
On Thursday, Jack Dorsey, chief executive of Twitter, stated to investors that “as we enter 2021’s second half, we ship more, learn faster, and hire remarkable talent.”
San Francisco-based social media network, Social Network San Francisco also laid out plans to spend on data centers and on new features like newsletters.
Twitter, however, warned it that the company’s total expenses and costs would increase by at least 30% in this year because of its plans to expand its workforce.
Snap is also testing new features in order to increase advertising revenue, including virtual reality services that allow users to try on clothes and make-up. Snap has been testing augmented reality “Spectacles” in recent months.
Spiegel stated that he is “pleased” by the technological progress made by his team.
The increase in spending and advertising online during pandemics has helped both companies. This was because companies were competing for consumer attention even though they weren’t at home.
However, they do face fierce competition from Google and Apple.
Apple’s April privacy control, designed to limit advertisers’ ability to track iPhone users without their consent, may hinder growth.
Jeremi Gorman, Snap’s chief executive business officer stated in a statement that the company had caused some disruption to customers.
Twitter stated that it was not yet possible to assess the effect of the policy.
Other challenges face the firm, such as a lawsuit against Twitter, Facebook, and Google filed by former US President Donald Trump, alleging he was a victim to censorship.
In conjunction with America First Policy Institute, the class action lawsuit also targets three of the companies’ top executives.
In January, Mr Trump had his social media accounts suspended due to public safety concerns following the Capitol Riots. These were led by Trump supporters.
According to Twitter the tweets leading to Mr Trump’s ban on “glorification” of violence were posted 8 January. This was two days following the events in Washington. His repeated assertions that Joe Biden won the election were unproven, triggered a riot.
Publited Fri, 23 July 2021 at 09:14.50 +0000