Snap Beats Q3 Expectations But Loses 2 Million More Users

Snap Beats Q3 Expectations But Loses 2 Million More Users

This afternoon, Snapchat’s email application reported that it had lost more active users in the three months ended in September than analysts expected. During the third quarter, the number of daily active users of the application decreased from 188 million to 186 million in the second quarter.

Despite the decline, the SAD was still up from 178 million in the third quarter of 2017. However, the most important for investors was the fact that the third quarter’s 186 million DAUs did not exceed Wall Street estimates of 187.56 million.

In a teleconference, Tim Stone, Chief Financial Officer of Snapchat, warned analysts that the company would lose more users in the current quarter, marking three consecutive quarters of declining DAU indicators for the company.

Some of the numbers reported today to exceed expectations. For example, revenues exceeded the $283.2 million expected to hit a record $297.7 million, a 43% jump from the year’s highest business figure. last.

Average revenue per user increased from $1.17 to $1.60, driven by growth outside North America. The net loss declined to $325.1 million (25 cents per share) from $443.2 million (36 cents per share) a year earlier. Parent company Snap says revenues for the current quarter ending at the end of the year will range from $ 355 to $ 380 million. Analysts were looking for $ 371 million.

CEO Evan Spiegel reiterated that Snapchat would now be targeting older users in the US and Europe. Jessica Liu, an analyst at Forrester, explains that one of Snap’s biggest problems with the Snapchat app is that the company “has a blurred vision on how to stand out beyond the under-population of 30 years in a crowded social media landscape “. One of Snapchat’s biggest rivals, Instagram, is in full swing. This is partly due to the “” feature that started on Snapchat and was better implemented on Instagram. Snapchat is still well known for its Objectives feature which allows the user to take a photo and adorn his photo with caricatural images such as large, soft dog ears, a police cap fitted with dark sunglasses, and even more.

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