Snap's DAUs Grew Faster Than Twitter, Facebook But Company Says Inflation May Hit Profit

Snap, in its quarterly report mentioned that economic challenges, supply-chain disruptions and inflation may continue to affect revenue growth.

New Delhi: Snap Inc, the parent firm of Snapchat on Thursday said its daily active users (DAUs) grew 18 per cent to 332 million year-on-year, more than expected even as it registered disappointing revenue growth in the current quarter. Snap, in its quarterly report mentioned that economic challenges, supply-chain disruptions and inflation may continue to affect revenue growth and advertising demand, the media has reported.

Snap Inc forecast second-quarter daily active users at between 343 million and 345 million, above Wall Street estimates of 340 million, according to a report by news agency Reuters.

"We believe the impact of the war in Ukraine on input costs, marketing budgets and overall economic competence has been significant, and that it is difficult to predict its impact on a forward-looking basis," Derek Andersen, Snap CFO, said during the earning's call.

With 332 million users growth annually, Santa Monica, California-based Snap is currently growing faster than Twitter and social networking giant Facebook. While Twitter's monetisable DAUs grew just two per cent in the US and 15 per cent worldwide, Facebook's DAUs fell in the last quarter. Snap Inc is the first of the major tech apps to report first-quarter earnings, and the results could cast a shadow over Facebook owner Meta Platforms Inc and Twitter Inc, the Reuters report added.

The company said that over 250 million Snapchatters engaged with Augmented Reality (AR) every day on average. Meanwhile, the company is hit by challenges posed by Apple’s 2021 privacy change that has made it difficult to target and measure ads on iPhones.