Snap sees revenues rise despite a drop in daily users

Snap sees revenues rise despite a drop in daily users

Snap sees revenues rise despite a drop in daily users

Saudi billionaire Prince Alwaleed Bin Talal has taken a 2.3% stake in Snap, buying $250m (£194m) worth of shares in the social media company.

The Los Angeles-based company's daily active users grew 8% year-over-year to 188 million, shy of the 193 million forecast by analysts.

On the upside, the company reported second quarter revenues of $262.3m against analyst estimates of $249.8m, up 44% over the same period previous year, and a loss of $0.14 earnings per share against a loss estimate of $0.18.

Snap, the parent company of Snapchat, has announced its first decline in daily active users following a controversial redesign.

Snap, which has never had a profitable quarter, went public in March 2017 with a $17 share price.

The company suffered a net loss of $353,310 during the quarter.

The social network has reported that for the first time it has started losing users who log in once a day. That's a 44 percent year-over-year increase and an 11.9 percent increase from last quarter. The company's results for the first quarter of 2018 were below expectations, and now the Q2 earnings report has been released.

Evan Spiegel said Snap does consider users' feedback: "We feel that we have now addressed the biggest frustrations we've heard, and are eager to make more progress on the tremendous opportunity we now have to show more of the right content to the right people".

Snap is battling for relevance against Facebook-owned Instagram, and many analysts had expected active daily user numbers to be flat.

Snapchat (NYSE:SNAP) today came out with a very surprising quarterly report.

"We thought the commentary around the Android rebuild indicated that we might be waiting about a year before we can expect to see the benefit from those efforts (and in the near term, DAUs should be down again next quarter)", Mark Kelley, an analyst at Nomura Instinet, said in a note to clients Wednesday.

Analysts, on average, had expected an adjusted a loss of 18 cents per share on revenue of $249.8 million.

The drop in daily active users is an unfortunate turn for the company, as it struggled with a tepid reaction to its app redesign late a year ago as well as continuing problems with its Android app.

Related news