Snap Loses $443M On Revenues Of $181M In Second Quarter

  • Snap Loses $443M On Revenues Of $181M In Second Quarter

Snap Loses $443M On Revenues Of $181M In Second Quarter

Snap's stock price has been significantly depressed since it reported first quarter earnings in May, its first such disclosure since going public. He said that existing customers were also spending more money with the company.

He said this "great progress" includes more frequent visits by users who spend more time and create more snaps than ever before - to the tune of 20 snaps per day from each DAU.

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That disappointing user growth was actually worse news than the ugly-sounding $443 million net loss Snapchat posted.

Making a bad situation worse, Snap failed to meet analyst expectations for the second straight quarter.

Most startups can withstand the red ink as long as they keep attracting more people to use their services.

Snap CEO Evan Spiegel's comments about "growth hacking" were not entirely satisfactory for one Wall Street analyst.Michael Kovac/Getty Images for Vanity FairA Wall Street analyst upstaged Snap CEO Evan Spiegel on the company's Q2 conference call thanks to a classic "hot mic" snafu.

Despite its struggles, some Snap watchers remain optimistic about the company's future.

"Until they do, investors will likely continue to be disappointed". Another might be on a new item for sale in the service's "marketplace" section.

250 million Snaps are saved to Memories each day. The estimate was 33 cents a share, not 15 cents a share. Lifestage was aimed at high schoolers - a big chunk of Snapchat's audience. Facebook has copied Snapchat's popular functions like "stories". In turn, that followed the demise of Poke, which also let people send photos and videos. Spiegel rejected a $3bn offer for the company in 2013.

The results underscore that "Instagram Stories has essentially flattened Snapchat's meteoric rise". In short, its Snapchat platform's user base is growing, but it's not growing at the same rapid pace it was growing at just a few quarters ago.

Other messaging apps are looking to clone Snapchat, too. Those investing in it were hoping for a rocket ride to global ubiquity, similar to the ones Facebook and Google enjoyed in the years following their IPOs.

Last month, Morgan Stanley, which helped underwrite Snap's I.P.O., issued a report on the company that questioned the measurement tools that Snap makes for advertisers. It's a continuation of a trend in slowing user growth for Snap over the previous year, spurred on in part by the introduction of similar features at Facebook-owned Instagram. Twitter, with its growth barely budging, is not.

Launched in 2012, Snap grew in popularity as an app that allows users to share pictures that delete themselves after being viewed.