Even as pandemic restrictions loosen, social media companies Twitter and Snap continue to attract users.
In the three months leading up to the end of June, Snapchat's daily users surpassed 293 million, exceeding experts' estimates.
In the same period, Twitter reported that the number of daily active users who view advertisements on its platform surpassed 200 million, increasing 11% year over year.
Both companies, which are situated in California, witnessed a rise in revenue.
Snap is the company behind the popular mobile app Snapchat, which is best known for its 24-hour-long video and photo "stories." Revenues more than doubled to $982 million (£713 million).
"Our second-quarter results reflect the broad-based strength of our business," Snap CEO Evan Spiegel said in a financial report. "We grew both revenue and daily active users at the greatest rates we have achieved in the last four years."
However, the company's net losses were still $152 million, down from $326 million in the same quarter of 2020.
Meanwhile, Twitter reported a 74 percent increase in sales year over year to $1.19 billion, with a profit of $65.7 million.
This is the first time that Twitter's ad income has surpassed $1 billion. The company stated that it had made investments to make advertising campaigns more accessible to small and medium-sized businesses.
On Thursday, Twitter CEO Jack Dorsey told investors, "As we enter the second half of 2021, we are shipping more, learning faster, and acquiring incredible talent."
The San Francisco-based social network also revealed expenditure plans for data centers and other features like newsletters and a subscription service that allows users to "undo" their posts.
On the other hand, Twitter warned that its total costs and expenses would climb by at least 30% this year as it prepares to expand its employees.
In recent months, Snap has been experimenting with additional features to boost ad revenue, such as virtual reality try-on services for clothes or make-up. It has even put augmented reality "Spectacles" to the test.
Mr. Spiegel expressed his satisfaction with the team's success in creating the technologies.
During the epidemic, both corporations benefited from a surge in online advertising and spending as businesses competed for consumers' attention while they were stranded at home during the lockdown.
Rivals such as Apple and Google, on the other hand, pose a serious threat.
Apple's new privacy measures, which were introduced in April and intended to prevent advertisers from tracking iPhone users without their consent, may slow growth.
In a statement, Snap's chief business officer Jeremi Gorman claimed it had already created "some interruption" in demand.
It was suggested on Twitter that it was too early to assess the new policy's impact.
Other problems threaten the company, including a lawsuit brought by former US President Donald Trump against Twitter, Facebook, and Google, alleging censorship.
The three firms' executives are also named in the class action complaint filed in collaboration with the America First Policy Institute think tank.
In January, Mr. Trump's social media accounts were restricted due to public safety concerns following the Capitol riots, which his followers spearheaded.
According to Twitter, the tweets that led to Mr. Trump's ban for "glorification of violence" were sent on January 8, two days after the rioting in the nation's capital. The violence erupted after he repeatedly claimed, without evidence, that the election was rigged in favor of Joe Biden.
Reference : https://www.bbc.com/news/business-57935258