Snapchat’s revenue increased 43 per cent to a record $298 million in the third quarter of 2018 and trailing twelve months revenue increased 53 per cent to $1.1 billion, compared to the prior year.
“We’re investing in long-term growth opportunities and driving operational efficiencies. We achieved record revenue and strong bottom-line results this quarter and expect a record fourth quarter, as we continue to invest in innovation for our community and scale our business,” said Tim Stone, Snap CFO.
Evan Spiegel, CEO, Snap said, “We have grown our community and engagement because we are different. We are the fastest way to visually communicate with close friends and family. We built Snapchat shots from the ground up to empower people to express themselves instantly through our camera, resulting in over 3 billion snaps created every day. We have attracted a large and loyal community, because our core visual communication product is built to support people’s close friendships. Over 60 per cent of our daily active users create snaps every day, because they use our service to talk with their close friends and family.”
The platform’s community grew 5 per cent over the prior year to 186 million daily active users and was down 1 per cent from the prior quarter. Average revenue per user increased to $1.60, an improvement of 37 per cent year-over-year and 14 per cent sequentially.
“The decline in users was primarily among Android users.In the third quarter, over 85 per cent of our advertising revenue on Snapchat was transacted via self-service, up from 35 per cent one year ago. The transition to self-service has allowed us to scale our sales efforts to smaller advertisers that we couldn’t initially reach,” Mr Spiegel added.
Commenting on the results, Yuval Ben-Itzhak, Chief Executive Officer at Socialbakers said, “Snap’s Q3 financial results come as a positive surprise. Despite the tough competition coming from Facebook and Instagram, Snap’s results show that is still has considerable appeal to marketers and to users alike. Snap’s recent innovations, such as Snap Originals, episodic programs with ads aimed at teens, and the fact that have given marketers the ability to buy their own ad space through programmatic channels, certainly look to be having a positive impact on their bottom line and the engagement of their community overall.”