Shares of Snap were up 12 percent after hours Monday as the social media platform beat second-quarter revenue expectations.
Revenue increased 19 percent year-over-year to $1.60 billion, as monthly active users grew to 971 million, up from 956 million in the prior quarter, and daily active users reached 493 million, up from 483 million in the prior quarter. The company reported a net loss of $164 million, after a net loss of $263 million in the prior year, as part of its renewed focus to reach profitability.
But beyond the current revenue growth that’s being seen around the app, and the company’s new “more focused, AI-enabled operating model.” CEO Evan Spiegel outlined that he sees the company’s future in its newest version of wearable technology.
“Our largest long-term opportunity is SPECS, a new kind of computer built into see-through glasses. SPECS are designed for a future in which AI does more work on our behalf and people spend less time operating screens. I believe we can pursue that future from a much stronger position by continuing to improve our core business and remaining disciplined about how we invest,” Spiegel said in the press release.
Snap announced the new wearable glasses in June, setting up pre-orders of the $2,195 glasses with expected shipment this fall in the United States, United Kingdom, and France. The glasses were described as a mix of other AI glasses and VR headsets, offering tech such as directions, AI assistance, the ability to stream content and overlay interactive lessons onto surfaces. The glasses don’t officially launch until Sept. 16.
