Despite the relaxation of pandemic restrictions, social media sites Twitter and Snap continue to increase users. In the three months ending in June, Snapchat’s daily users exceeded 293 million, exceeding analyst expectations. During the same period, the number of daily active users who saw advertisements on Twitter increased by 11% every year. Sales of the two companies also increased.
Snap owns the Snapchat mobile app, which is famous for its video and photo stories that disappear after 24 hours. The company’s sales increased more than twice to US$982 million (£713 million). Our second-quarter results reflect the broad-based strength of our business, as we grew both revenue and daily active users at the highest rates we have achieved in the past four years,” Evan Spiegel, CEO of snap added in its financial update.
However, the company is still at a loss of 152 million U.S. dollars, while the net loss for the same period in 2020 is 326 million U.S. dollars. At the same time, Twitter reported that revenue increased by 74% year on year to 1.19 billion US dollars, which allowed the company to obtain 65.7 million US dollars in profits.
This marks the first time that Twitter’s advertising revenue has exceeded the $1 billion mark. The company said its investment is to make it easier for SMEs to purchase advertising campaigns. “As we enter the second half of 2021, we are shipping more, learning faster, and hiring remarkable talent,” Twitter CEO Jack Dorsey told investors.
The social media site also has plans to host funds in the data center, as well as new features such as newsletters and subscription services that let its users “undo” their posts. However, Twitter warned that as it also plans to increase staffing, its total costs and expenditures this year will increase by at least 30%.
In the past few months, Snap has also been trying to add new features to increase advertising revenue, such as virtual reality clothing and makeup testing services. He even tested augmented reality spectacles. Spiegel, the CEO said he was “satisfied with the progress the team has made in technology development.”
Both companies were driven by increased advertising and online spending during the pandemic, as the two companies caught the attention of consumers when they were isolated at home. However, they face fierce competition from competitors such as Apple and Google, as well as new privacy controls.
The measures Apple disclosed in April to prevent advertisers from tracking iPhone users without their knowledge may hinder growth. Jeremy Gorman, Snap’s chief commercial officer, said in a statement that this has caused “some interference”. It is too early to determine the impact of any new policies.
The companies also face other problems, including the lawsuit filed by former US President Donald against Twitter, Facebook, and Google, accusing them of unlawful censorship. In January of this year, after the riots in Washington caused by his supporters, Trump was denied access to his social accounts for security reasons.
However, the company is still at a loss of 152 million U.S.dollars, while the net loss for the same period in 2020 is 326 million U.S.dollars. The social media site also has plans to host funds in the data center, as well as new features such as newsletters and subscription services that let its users “undo” their posts. In the past few months, Snap has also been trying to add new features to increase advertising revenue, such as virtual reality clothing and makeup testing services.