Snap adding daily users in North America, unlike Facebook

Earnings


Snap is still growing faster than Facebook in North America, the most lucrative market for both companies.

Snap said late Tuesday its daily average users in the region during the fourth quarter of 2017 rose 5 percent from the prior quarter to 80 million.

Facebook said last week its daily average users in the U.S. and Canada fell slightly from the third quarter, to 184 million. That was the first time Facebook reported such a drop.

On a year-over-year basis, Snap grew much faster during the period, with North American DAUs surging 17.7 percent.

Meanwhile Facebook’s growth was just 2.2 percent on that basis.

The figures suggest that even though Facebook dented Snap’s overall growth last year by copying many of its features, including Stories, Snap finished the year strong, helped by a product redesign.

In one test market, Snap said that the number of daily active users watching Publisher Stories on Discover grew by over 40 percent, when compared to the old design of the application.

Snap posted quarterly revenue above expectations, while its loss was less than expected, sending its shares soaring around 20 percent in after-hours trading.

Snap’s average revenue per user in North America rose to $2.75 in the fourth quarter from $2.15 a year ago, while its overall ARPU grew even faster, to $1.53 from $1.05.

Disclosure: CNBC parent NBCUniversal is an investor in Snap.



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