Snap Inc. (NYSE: SNAP) reported its fourth-quarter 2019 earnings results on Tuesday with a 44% growth in revenue and adjusted EPS of $0.03. The company’s daily active users (DAUs) grew 17% year-over-year to 218 million during the quarter. DAUs increased on a sequential and year-over-year basis across all regions and platforms.
Although Snap’s numbers are nowhere close to its rival Facebook’s (NYSE: FB) DAUs, which stand at 1.66 billion, the company is doing everything it can to drive user growth and engagement. A significant portion of Snap’s investments and efforts are centered around its content and augmented reality platforms.
As mentioned on its quarterly conference call, these platforms continued to grow during the quarter, with Discover, the curated content platform, growing both in reach and time spent. The company has broadened its product and content offerings through partnerships and is making efforts to provide culturally-relevant experiences to its international users through its Discover channels.
The number of people watching over 15 minutes of premium Discover content daily grew by around 50% year-over-year, turning Discover into a prime spot for mobile content consumption. Snap is also investing significantly in Originals and other premium content offerings.
The Lens Studio platform is helping drive engagement on Snapchat by increasing the number of AR experiences available. During the quarter, the number of users who came to Lens Explorer for augmented reality experiences climbed by five times compared to the same period last year.
Snap sees meaningful potential ahead and believes its platform is still extremely under-monetized. The company is working to scale its revenue in order to be able to self-fund its investments in future.
Snap’s shares were up 4.8% in afternoon hours on Thursday. The stock has gained over 19% in the past three months.