The company Snap, which owns the popular messaging app Snapchat, exceeded Wall Street's revenue expectations for the quarter and user growth during the second quarter. Recently, the company was able to attract advertisers due to new advertising opportunities. However, in the fourth quarter, the company is projecting weaker revenues than analysts expected due to decreased demand for advertising from large brands.
The company, based in Santa Monica, California, whose main source of revenue is the sale of digital advertising, has been struggling with major competitors such as Meta, which owns Facebook and Instagram. To compete more successfully, Snap has begun investing in machine learning to improve ad targeting for users.
One of the company’s representatives noted: "We are confident that our strategy of using data and content marketing technology puts us in a good position for growth in the future."
