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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.
In the blue bird’s net…
Twitter will also report to its shareholders on Thursday. So, with Twitter shares rising nearly 130% in the past 12 months, expectations are high for Jack Dorsey’s social network. Analysts hope Twitter has approximately 50% increase in revenue this quarter, totaling around 1 billion dollars. In the same period in 2020, the company earned 686 million dollars.
Optimism continues for the growth of users. Compared to 139 million active users in the second quarter of 2020, analysts expect Twitter to grow by 34% and reach 186 million.
It is noteworthy that since July 2020, Twitter counts monthly active users differently. The company only considers accounts that receive ads via the feed (“active daily and monetizable users” or mDAU), something that is not possible for users using the TweetDeck or other platforms.
In recent months, the bird’s social network has announced several changes that focus on platform monetization through subscriptions. The first one is the function called “Super Follow”, which will allow content creators to monetize their audiences.
With the same goal in mind, Twitter bought news startup Scroll, which allows users to subscribe to and read news from portals without ads, and the newsletter platform Revue, which offers newsletter subscriptions.
The Clubhouse’s rise in early 2021 led to the creation of Spaces, which allows a group of up to 10 people to come together to debate an issue in front of an audience. The tool was available along with the Fleets, the Twitter stories, which will be turned off in early August after the lack of popularity among users. Other changes should come when the audience received during the pandemic normalizes.