Displaying items by tag: Evan Spiegal
The parent company of the app Snapchat posted Q2 results on August 10 that disappointed investors. The company went public with an IPO in March last year, and reported sluggish user growth two months later in May. One year on, Snap reported net losses of $443 million, compared to $115.9 million in 2016.
Snap generated revenue of $181.7 million during its second quarter for 2017, which ended on June 30, compared to $71.8 million during the same period last year. The company’s net losses of $433 million are equal to a loss of $0.16 per share, compared to analysts who had expected revenue of $185.8 million, and losses of $0.14 per share.
Snapchat’s daily active users grew slightly in Q2 to reach 173 million, up from 166 million during Q1 and 161 million in December. But once again, Snap Inc. disappointed analysts who had hoped for 175 million daily active users.
Majority of Snap’s new users (4 million) came from the United States and Canada, the market that’s best monetized by the company. 2 million new Snapchat users came from Europe and the rest of the world.
An average of 20 images and videos or ‘Snaps’ are shared on the Snapchat app per day, according to Snap Inc. CEO Evan Spiegal, adding that users spend an average of 30 minutes on the app per day.
The company said revenue per user in the US increased to $1.05 after falling in Q1 to $0.90. The increase was driven by significant growth in Europe, Snap said, where the Snapchat app generated $0.39 per user in the second quarter, compared to $0.24 in the first quarter.
Losses are having a significant impact on the company. Snap reported a record net loss of $2.2 billion during the first quarter, but this was mostly due to stock-based bonuses for top Snap executives. But its second quarter losses of $443 million have troubled investors, and contributed to them lowering Snap’s stock 17 percent in after-trading hours.
Snap Inc., the parent company of image and video sharing app Snapchat, recently reported its quarterly financial earnings for the first time since going, and the results weren’t good. Snapchat’s user growth has stalled and the company’s revenue was below Wall Street expectations for the quarter.
The company went public with an IPO in March, and spent almost $2 billion in stock-based compensation, which in large part contributed to its net loss. Snap Inc.’s revenue was reported at $150 million, which fell $8 million short of Wall Street’s $158 million expectations. Following Snap’s earnings announcement, its stocks fell 23 percent to $17.67, bringing them dangerously close to its IPO price of $17.
Snapchat currently has 166 million daily active users, which is an increase of 36 percent from the 122 million in the same period last year. This pales in comparison to Facebook’s approximately 1.94 billion monthly active users for March 2017. Snapchat’s growth appears to have been stemmed by Facebook copying its features; for example, Instragram’s Stories feature mimics Snapchat’s disappearing video messaging concept.
It remains unclear how Snap Inc. will measure up to its heavy competition, but its foray into hardware such as Snap’s Spectacles eyewear product. Snap Inc. CEO Evan Spiegal attempted to ease concern regarding the company’s earnings results by explaining how Snapchat won’t succeed because of massive growth numbers, like its competitors. Instead, it will succeed because it offers more quality as a product.
Spiegal dismissed the practices of typical consumer apps, which he called “growth hacks” such as excessive push notifications or prompts for users to connect with everyone in their address list. Those sorts of techniques, he said, are not “very sustainable over the long term.” He said the company is more focused on making product improvements.
“The way that we try to help people understand how we think about daily active user growth is really through the lens of creativity and creation,” he said, before mentioning the app’s lenses product that lets users change their appearance for selfies. “People enjoy looking like a puppy and things like that.”