ibusinesslines.com
ibusinesslines.com November 18, 2018


Snapchat Loses 3 Million Daily Users, But Posts Q2 Earnings Beat

09 August 2018, 04:13 | Kelvin Horton

Snapchat Loses 3 Million Daily Users, But Posts Q2 Earnings Beat

Snapchat Loses 3 Million Daily Users, But Posts Q2 Earnings Beat

Snap narrowed adjusted losses to 14 cents per share on a 44% hike in revenue to $262.3 million. The company is expecting revenues of between $265 million and $290 million for the quarter, and an EBITDA loss of between $185 million and $160 million.

Snap reported 188 million daily active users during the last quarter - falling short of Wall Street's expected 192 million and dropping from last quarter's 191 million.

With self-service ads, Snap has been able to grow revenue in regions such as Australia and the Middle East, where direct sales efforts are more limited and advertisers have few other options to market to its mainly 18-34-year-old users. "We are learning a lot as we continue to iterate based on customer feedback", Spiegel said about the smart glasses.

Snap (SNAP) has lagged behind its social media brethren this year while waiting for its retooled design to resonate with consumers.

Shares in Snap climbed more than 12 percent in after-hours trading before reversing course and going flat.

Snapchat was forced to redesign the new look, but not before it started to experience a decline in users at the end of the first quarter, which continued into the latest quarter. Snap recently appointed a new chief financial officer, Tim Stone, who was previously at Amazon.


But some analysts on Tuesday brushed off Snap's user drop, saying that Snapchat always had more limited appeal than larger rivals.

Snap only brought in $2 million in non-advertising revenue.

While there has been quite a bit of noise in regard to social media stocks lately, with Facebook taking the lead in the downtrend, Snapchat has pulled off a relatively impressive quarter, making this last quarter a quarter to remember for team Snapchat. It is also an increase of 13.6pc on the results from Q1 2018.

"We thought the commentary around the Android rebuild indicated that we might be waiting about a year before we can expect to see the benefit from those efforts (and in the near term, DAUs should be down again next quarter)", Mark Kelley, an analyst at Nomura Instinet, said in a note to clients Wednesday. A change.org petition to reverse the update gained more than 1 million signatures, and several of Snapchat's most prominent users publicly questioned the company's future.

Employees had griped about Snap's network of small, spread out offices in Venice.



Other News

Trending Now

Not the Streaming Deal ‘Star Wars’ Fans Are Looking For
On an adjusted basis, Disney earned $1.87 per share, below estimates of $1.95 per share. In after-hours training, Disney's stock fell 49 cents to $116.07 (roughly Rs. 8,000).

Premier Ford expected to announce 'buck and beer' in the County
He's not the only brewery thinking that way. "So yah, we're out". "Yeah, I'll take it", said one man unloading empties. What it will mean is that the government will offer "non-financial incentives" to brewers who sell beer for $1.

Australia's Turnbull: 'Now we are the land of droughts'
As drought hits hard in north-western NSW, kangaroos are swamping the township of Gunnedah in search of grass on front lawns and water from sprinklers.

Johnny Depp's Biggie-Centric Film "City Of Lies" Has Been Shelved
According to Deadline , Depp's movie was set to release on September 7, but that will no longer be the case. Depp last month was sued by a location manager involved in the production who said the actor punched him.

NYC becomes first USA city to impose Uber/Lyft cap
Mayor Bill de Blasio and Corey Johnson, the City Council speaker, say the bill will help cut down on the amount of congestion on the streets of NY .

Kourtney Kardashian And Younes Bendjima Split And It's Already Messy
After almost a year of dating, reality star Kourtney Kardashian , 39, and model Younes Bendjima , 25, are over. Bendjima was photographed in Mexico on Monday looking mighty comfortable with another woman .

Dhaka clashes turn violent; mobile internet services snapped
If the bus driver's casualties are lost and the people raise their voices against it then the bus operator goes on strike. The details are still emerging, but reports indicate that several student protesters have been injured in the clashes.