latest-news-headlines Market Intelligence /marketintelligence/en/news-insights/latest-news-headlines/covid-19-presents-large-opportunity-for-growth-in-ar-commerce-8211-snap-ceo-59519829 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

COVID-19 presents 'large opportunity' for growth in AR, commerce – Snap CEO

Virgin Media-O2 Tie Up, EC Reversal on Three-O2 to Reboot Consolidation

COVID-19 Impacts Incumbent Telco Revenues In Western Europe

Disney+ Ditches Free Trials — Will Other Big Streamers Follow Suit?

COVID-19 Pandemic Likely To Cause US Telemedicine Boom


COVID-19 presents 'large opportunity' for growth in AR, commerce – Snap CEO

Snap Inc. executives said that while the COVID-19 pandemic continues to weigh on many aspects of the business, the virus has driven a surge in augmented reality and entertainment activity on the platform.

The number of Snaps that users created every day during the second quarter grew at double the pace of the company's daily active user growth over the past year, Snap CEO Evan Spiegel said during a July 21 earnings conference call, adding that the number of people using augmented reality tools on the platform has increased 37% in the period compared to a year ago.

"As the changing public health landscape accelerates the adoption of digital products, we believe there is a large opportunity for us to further empower new behaviors with AR, entertainment and commerce," Spiegel said.

Snap's daily active users increased 17% year over year to 238 million in the second quarter.

Snap did not provide specific third-quarter financial guidance due to current uncertainties, but company CFO Derek Andersen estimated year-over-year revenue growth to be 32% through July 19. However, he warned that advertising demand will likely not materialize in the same manner as in previous years, due to a lack of clarity around back-to-school seasons, film releases and sports operations.

"Our best estimate at this point is that our full quarter revenue growth rate is likely to be below our quarter-to-date estimated actual growth rate," he said.

Turning to financials, the Snapchat parent company reported revenue for the quarter ended June 30 of $454.2 million, up from $388.0 million a year earlier. Consensus estimates called for second-quarter revenue of $447.8 million, according to S&P Global Market Intelligence.

Snap's quarterly net loss came to $326 million, or 23 cents per share, compared to a net loss of $255.2 million, or 19 cents per share, in the year-ago period.

The S&P Global Market Intelligence consensus estimate for the just-ended quarter was a loss of 22 cents per share on a GAAP basis, or a loss of 10 cents per share on a normalized basis.

Snap shares were down in after-market speculation as the company's July 21 earnings call came to a close.