News: Snap says revenue growth does not depend on more users, engagement.
(Reuters) – Evan Spiegel, chief executive of Snap Inc, said on Wednesday the tech company expects it can achieve 50% annual revenue growth over several years without increasing its user base or engagement.
Spiegel clarified an earlier estimate by saying that annual revenue growth of 50% does not depend on continued user growth or engagement and reflects the “steady state” of current business. He was speaking in the virtual Morgan Stanley Technology, Media and telecommunications conference on Wednesday.
According to Spiegel, Snap can increase its average revenue per user as it continues to develop augmented reality products like photo filters and add more media content like shows as part of its discovery function.
The company, which owns the popular photo messaging app Snapchat, generates revenue from selling ads on the app and has been heavily focused on developing better ad formats for brands and helping advertisers deliver products to a young one during the pandemic Selling Audience.
Snap had fourth quarter revenue of $ 911 million and 265 million daily active users.
Reporting by Sheila Dang; Adaptation by Cynthia Osterman
Original Source © Reuters