Snapchat reveals upward but disappointing results for markets that expected better.
Snapchat today unveiled its results for the first quarter of 2018. One thing is certain: the latter seem rather disappointing and below expectations. It must be said that the company has experienced difficulties and the many changes – some unwelcome – within the application attest. Future commercials impossible to pass, highlighting sponsored content … The application of ephemeral photos and videos seems to do everything to display satisfactory results. For this beginning of the year 2018, it seems missed!
Markets react negatively to Snapchat figures
The figures for the first quarter of 2018 displease the markets that immediately reacted to them. And for good reason: the action of Snapchat fell 16% in the stock market. Still, the app shows a turnover of $ 230.67 million – at the same time last year it was $ 149.65 billion. An increase of 54% is therefore present but below the market estimates of $ 244 million. Snapchat then records an average revenue per user of $ 1.21, an increase of 34% compared to last year at the same time. In contrast, the application shows a loss of $ 385.79 million against a loss of $ 2.21 billion last year. The loss per share recorded is therefore 17 cents while markets expected 16 cents – new disillusion for Snapchat.
User level, Snapchat boasts 191 million connected daily. Last year it was $ 166 million. But as always, the markets were expecting 193 million and Snapchat is failing against expectations. Not to mention that the growth in the number of users is rather low.
It remains to be seen how Snapchat plans to bounce back to increase its numbers. As a reminder, the company has just unveiled its glasses connected in a second version while adjustments to the highly criticized update has been made. Mandatory advertisements of 6 seconds could soon be integrated.