Finance

Snapchat's parent company reports £1.7bn loss in first earnings report

Snapchat's parent company reports £1.7bn loss in first earnings report

Snap revealed user growth has slowed considerably in its first quarter that ended March 31. The news, however, wasn't very good.

Call it "snap judgement" or an overreaction by investors, but with a top- and bottom-line miss combined with declining user growth metrics, the upstart rival to Facebook (FB) did nothing to help itself.

Daily active users (DAUs) on the app rose just five per cent quarter-on-quarter and 36 per cent year-on-year, to 166m. Revenue was also lower than expected with the company bringing in $149.6 million in the quarter instead of the $159 million that analysts expected. That's an increase of over 2,000 percent in just a year. Snapchat shares were down nearly 25% in after hours trading.

According to CNBC, Snap Inc. traders are almost a decade younger than the average age of those trading retail equities. The company has only been public for around a month, and there's still plenty of time for it to smooth things out.

Snapchat's first earnings report didn't meet industry expectation.

It remains to be see how well and for how long Snap can weather its competition in light of less than flattering analyst assessments.

Okay, so Snap refused to say how many Spectacles it had sold. However, for the same period of past year, Snapchat observed 52% YoY increase in DAUs.

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Snap (SNAP) posted its first quarterly report as a public company on Wednesday and the results shed light on numerous social media upstart's vulnerabilities: Snap is struggling to maintain user growth and its path to profitability remains unclear. The company added three million in Europe to hit 55 million DAUs.

He emphasized that users were still highly engaged with Snap.

The owner of Snapchat lost more than $2 billion during its first quarter as a publicly traded company. The whole Instagram app has about 700 million monthly users.

LinkedIn consistently had high performing quarters, before it was sold to Microsoft for over $26 billion in 2016.

Spiegel's net worth is largely derived from his stake in Snap - a stock that has been highly volatile since going public in early March. The numbers, as you can tell from the company's stock plunge, were considerably less than initial Wall Street estimates...

Google also reported net income of $52 million.