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Wednesday, February 07, 2018
Snap Reports High Revenue Surges on User Growth, Advertising Gains

Snap inc. reported high sales as advertisers start to get more comfortable spending money on its Snapchat app.

The company's app, Snapchat, has been very popular with young people and it seems that it has growth potential to take a slice of a digital ad market dominated by Facebook and Google.

Snap said fourth-quarter sales jumped 72 percent to $285.7 million. Snapchat had 187 million daily active users in the fourth quarter, up 18 percent from a year ago. Average revenue per user, rose 46 percent to $1.53 in the final period of 2017, while a similar measure of costs grew much more slowly, according to the company.

Snap is offering an automated bidding process for selling ads. According to Snap Chief Strategy Officer Imran Khan, the move has attracted advertisers spending in the compoany's auction.

Snapchat is competing with Facebook's Instagram, which has copied some of Snapchat's most popular features for bigger audiences.

The Snapchat app has been also redesigned, although the changes are rolling out slowly.

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