Snap revenue tops estimates due to mobile ad demand

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Snap picked up a big backer in Saudi Arabia's Prince Alwaleed bin Talal, who announced soon after the second-quarter results he had bought a 2.3 percent stake for $250 million in May.

Despite the solid financial numbers, Snap reported its first-ever decline in sequential daily active users.

Its revenue was $262 million in the second quarter, beating the average estimate of $250.43 million, as average revenue per user surged to $1.40 from $1.05 a year ago.

The overhaul of the once fast-growing app turned some users away, and more people are flocking to Facebook Inc.'s Instagram, which has successfully copied Snap's most popular features.

Snapchat's major redesign, first introduced towards the end of 2017, was also met with criticism by many users - including high-profile users such as Kylie Jenner - eventually forcing a further redesign.

Analysts had expected net losses of $0.17 per share in revenue of $251.19 million.

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Advertising revenue is up 48 percent year-over-year as well, making the platform all the more enticing to the potential advertiser. Speaking six months after the relaunch, he added: "We have been working hard to iterate and improve Snapchat based on the feedback from our community".

For the quarter ended June 30, Snap said it lost an adjusted $0.14 per share in the quarter ended June 30, where analysts had expected a loss of $0.18 per share.

"While our Monthly Active Users continued to grow this quarter, we saw a 2 percent decline in our Daily Active Users", CEO Evan Spiegel said on a call with analysts after the report. It will be interesting to see if this trend of desiring privacy in the modern era will continue, or if Facebook and Twitter are just waiting to pounce.

However it beat analyst expectations on revenue to rake in $262m over the last three months, indicating that while users may not be too keen on its Snapchat product since its design overhaul, advertisers are thinking differently.

The prince had previously been rumoured to be interested in investing in Snap prior to its IPO, though in 2015 a source told Reuters there were "no plans to invest".

Ahead of the release of the results on Tuesday, the self-described camera company warned year-over-year growth had slowed down "significantly" from the first quarter's 54%.

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