Snap returns to quarterly revenue growth on improved ad business
BNN Bloomberg
Snap Inc. returned to revenue growth in the third quarter after two periods of declines, showing the long-running improvements to its digital advertising business are finally paying off. The company cautioned, however, that the progress may be blunted in the current period by advertiser delays spurred by the war in Israel and Gaza.
Sales increased 5.4 per cent to US$1.19 billion in the period ended Sept. 30, Snap said Tuesday in a statement. Analysts, on average, projected a revenue decline of 2 per cent, according to data compiled by Bloomberg.
Snap has spent much of the year working to revamp the advertising business on the Snapchat app in an effort to reverse a slowdown in sales. It’s part of a strategy the company announced last year to target investments and projects that can directly boost revenue.
“We are focused on improving our advertising platform to drive higher return on investment for our advertising partners, and we have evolved our go-to-market efforts to better serve our partners and drive customer success,” Chief Executive Officer Evan Spiegel said in the statement.
