Twitter and Snapchat: What will they show in Q2?

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Snap Inc., controller of Snapchat, may have lost its space in Brazil, but United States continues to figure among the largest existing social networks. And evidence in favor of the platform’s good performance should come from the balance sheet for the 2nd quarter, which will be presented this Thursday, 22.

The revenue estimate for the quarter is currently at $838 million, indicating an 84.5% increase over the prior year. The value of the shares, however, is expected to depreciate by US$ 0.18 compared to the previous period. Last year, investors had a total return of 146.7% per share, an attractive number and above analysts’ expectations.

Considering that Snap’s revenue is mainly generated by selling in-app advertising, there is a good forecast in this regard. According to analysts, the average value generated per user is expected to increase 53.2% in the second quarter, demonstrating how well Snap is monetizing audiences.

For the quarter to be reported this afternoon, Snap should highlight that it launched Creator Marketplace, which integrates content creators directly into Snap’s advertising ecosystem. The strategy is to move away from third parties and centralize the negotiation and sale of exclusive content, in addition to ensuring that companies connect through them with the creators of the so famous and copied ‘Snap filters’.

But even with a growth of 51 million users in the last balance, there are doubts about how business will be after the weakening of the pandemic, which should take away users who sought the social network for entertainment at home.