Snapchat sees revenue, user base grow on wider release of Android app

Brief:

Snap's revenue rose 39% to $320.4 million in Q1 2019 from $230.7 million a year earlier, according to the company's 2019 Q1 financial report, beating Wall Street estimates of $306 million.
Snapchat's daily user base increased 2% to 190 million in Q1 2019 from 186 million in the previous quarter, halting three straight quarters of declines or flat results. The audience numbers handily beat analyst forecasts of 187 million, and the company reports that it reaches 90% of 13-24 year-olds and 75% of 13-34 year-olds in the U.S.
CEO Evan Spiegel attributed the growth partly to the broader availability of the Android version of its image-messaging app. "There are billions of Android devices in the world that now have access to an improved Snapchat experience," he said in a statement. In addition, nearly half of daily Discover viewers used the platform's content discovery page every day of the week in Q1.

Insight:

Snap's return to growth indicates that the company’s redesign of Snapchat and popularity among young adults and teens are paying off. The company has struggled in the past couple of years to cope with a growing threat from Facebook, particularly as its image-sharing app Instagram copied popular features from Snapchat and continued to expand its audience.

Snap CEO Evan Spiegel touted the release of its Android app, which had been dogged by technical problems, for the company’s resumed audience growth. Google's Android mobile operating system powers 86% of the world’s smartphones, and is key for Snapchat to grow outside of the United States.

Snap also is gaining traction among new advertisers while holding on to 58% of its prior sponsors, according to tracking firm MediaRadar. Forty-two percent of Snap’s advertisers were entirely new to the platform in Q1 2019, the firm said. Along with reporting greater engagement with its Discover page, Snapchat has seen the the number of brands placing ads on premium Snapchat Discover channels increase 15% Q1 year-over-year, according to MediaRadar.

"[Snap] has a healthy mix of both new and returning clients, has the loyalty of major advertisers like Comcast, Adidas and Disney, and saw their roster of advertisers swell by 15% in Q1 2019," Todd Krizelman, CEO of MediaRadar, said in a statement emailed to Mobile Marketer.

Snap looks to build on its first quarter growth with several initiatives announced earlier this month. The company unveiled new Snap Kit features, including App Stories capabilities that let third parties integrate Snapchat Stories into their apps. The company also revealed new augmented reality (AR) features, streamed TV shows and plans for a gaming platform.

"Looking ahead, Snap has good momentum on the heels of its first partner summit. One of the biggest opportunities for marketers is the Snap Audience Network, which will help brands expand the reach of their Snap Ads," Aaron Goldman, chief marketing officer of 4C Insights, said in a statement emailed to Mobile Marketer.