Snap Sales Beat Estimates on Rebound in Digital Ad Spending
- Parent of Snapchat app added more daily users than expected
- App dodged political scrutiny hitting rivals Facebook, TikTok
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Snap Inc. surged more than 20% after the social-media company reported quarterly revenue and user growth that topped estimates, lifted by advertisers’ stepped-up spending and consumers’ increased use of their phones for messaging and entertainment during the pandemic.
The company, which makes the popular Snapchat mobile app for sending disappearing photos and videos, said third-quarter sales rose 52% to $678.7 million, far exceeding the $559.2 million average analyst estimate. Snapchat had 249 million daily active users in the quarter, compared with the 244.6 million average projection in a Bloomberg survey.