Snap’s Snapchat on Tuesday reported higher than expected user growth and revenue, getting a boost from a better version of its Android app and the launch of new augmented reality photo lenses.
The company said the number of daily active users rose to 203 million in the second quarter ended June 30 from 190 million in the prior quarter. The user metric was also up from 188 million a year earlier.
The AR lenses, which are filters that can overlay everything from bunny ears to freckles onto a user’s photo, went viral when it introduced a lens that let users switch their gender in photos.
In recent months, Snap scored wins with its augmented reality lenses, launched mobile games within Snapchat in partnership with game developers such as Zynga Inc and invested in more content on Discover, the part of the app that houses original shows and content from media partners.
Snap’s revenue, which it earns from selling advertising on the app, jumped about 48% to $388 million.
Snap expects daily active users to be between 205 million and 207 million in the third quarter, Chief Financial Officer Derek Andersen said.
Of the 13 million daily active users Snap gained during the second quarter, 7 million to 9 million were from the new augmented reality lenses, Andersen said.
Net loss narrowed to $255.2 million from $353.3 million a year earlier.
Snap expects third quarter revenue in the range of $410 million to $435 million.
Snap on Tuesday also announced a new, faster Snapchat — rebuilt just for Android phones.
Rebuilt from the ground up, the app includes updates to Lenses, Stories, taking Snaps, and more.