Snap acquired FitAnalytics and the fashion recommendation app Screenshop

Snap Inc is expected to report earnings on 22 April, 2021 after the market closes. The stock has skyrocketed since the pandemic started last year. The stock price is around $58 on Wednesday, but a strong set of numbers could push the price even higher.

The consensus EPS Estsimate is -$0,05 (+37,5% YoY), and the consensus revenue estimatae is $740,89 million (+60,2% YoY). Snap is without any doubt a pandemic winner, but the company can remain at this level when countries are opening up again.

Snap`s average revenue per user (ARPU) which increased by 33% to $3,44 is far away from the king of social media; Facebook, which generated a staggering $32 per user in the period. As you can see, there is room for growth in here and innovation can help Snap in the future.

Photo by Thought Catalog on

Earlier this month, Snap acquired the fashion recommendation app Screenshop. A company that analyzes photos to provide clothing suggestions. In March, they acquired FitAnalytics, a machine learning platform that helps customers pick the right clothing size when they shop online.

Both companies will be integrated into the Snapchat app very soon.

Snap is also working with PayPal to expand into new industries like cryptocurrencies and e-commerce. These are growth drivers that can help them both to boost their growth rate make investors and money makers happy.

Snapchat is popular among Gen Z (13-24) and their DAU is growing. DAUs were 265 million in the last quarter, and they are growing in Europe, North America and the rest of the world. Snap offers one of the most-used camera applications globally. 5 million snaps is created daily.

First-quarter top-line growth might have been impacted by lower ad spending. Also, a continued decline in price per ad impression and increasing competition might have weighed on advertising revenues, the only source of revenues for Snap.

Usage of augmented reality (AR), one of the fastest-growing digital technologies during the pandemic, is anticipaated to expand four-fold by 2023.

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