(MENAFN) Snap Inc., the parent company of the popular Snapchat app, exceeded expectations with its first-quarter revenue, which rose to approximately USD1.2 billion, marking a notable 21 percent year-on-year increase. However, the social media platform aimed at teenagers is grappling with challenges in attracting advertisers, despite its positive financial performance.
In its financial statement released on Thursday, Snap reported a decrease in quarterly losses, with losses amounting to USD305 million in the first quarter compared to USD329 million in the same period last year. Evan Spiegel, the president of Snap, emphasized the value that the Snapchat application provides to its community and advertising partners, which has translated into improved financial performance for the company.
Spiegel highlighted Snap's growing significance to advertisers of all sizes, attributing this to its large and expanding audience, which represents a challenging market to reach. Additionally, Snap's reputation as a safe environment for brands and its comprehensive advertising solutions have contributed to its appeal among advertisers.
Despite the challenges in attracting advertisers, analyst Jasmine Enberg from eMarketer expressed optimism about Snap's future prospects. Enberg noted that while Snap has faced difficulties in generating revenue, the company's recent financial results indicate that its efforts in developing its advertising business are beginning to yield positive results. Enberg further suggested that Snap's strong performance in the first quarter may set the stage for continued success throughout the remainder of the year.
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