BEGIN ARTICLE PREVIEW:
Snap Inc.’s revenue surged in the latest quarter, as the company attracted more users to Snapchat as well as advertisers looking to reach people spending more time online and on mobile devices as a result of the coronavirus pandemic.
Quarterly revenue rose 52% to $678.7 million, well ahead of analysts’ estimates of $557 million, according to a FactSet poll. Many advertisers resumed or increased their marketing budgets during the quarter, the company said, as businesses redirected money to self-serve advertising, a faster way of launching a campaign while reducing costs.
Snapchat added 11 million users from the prior quarter to end the September period with 249 million daily active users. The user growth was stronger than analysts had forecast and showed that the platform benefited from strong engagement even with the emergence of TikTok and strong results earlier this year from Facebook Inc.’s networks. Snap said it continues to see strong engagement among Gen Z and Millennial users in the U.S., the U.K. and France.
Shares rose more than 20% in after-hours trading to $35. Snap’s shares had gained 74% this year through Tuesday’s close.
On a conference call Tuesday, Jeremi Gorman, Snap’s chief business officer, said the company landed business …
END ARTICLE PREVIEW