Snap Inc. loses $2.2B in first quarter as public company

The social network argued during its earnings call that numerous teenage users it has can’t be reached by traditional television or print advertising, according to the Verge. This is two million less than expected but a 36% increase year on year.

It wasn’t the day Snap Inc – the parent company of Snapchat – had planned.

It is also registered an increase of 36 per cent on the 122 million daily users the app had this time previous year.

Although Snapchat is best known for its smartphone messaging, it has also developed partnerships with numerous media outlets eager to reach its audience with news, video and other content. The company has sharply divided the bulls and the bears, with bulls pointing to the company’s popularity among teens and scalability, while bears have pointed to the the company’s lack of profits, and weak growth in its user base.

Average revenue per user is up 181% this quarter compared to last year’s numbers this same time of the year.

Shares in Snapchat’s parent company Snap Inc. have plummeted in value by nearly a quarter – to the tune of $6 billion.

“When Google came along, everyone really felt like they needed a search strategy”, said Evan Spiegel, the CEO of Snap.

Late yesterday, Snap Inc. reported its quarterly financial results and the results were bad.

We recently reported that facebook is very close to hitting the 2 billion mark for its daily active facebook users. It reported a tremendous number of 1.28 billion users for 2017’s first quarter.

Even the team at the Facebook-owned Instagram has acknowledged the inspiration it got from Snapchat, and using it to build on their own platform. And Instagram’s Stories feature – which is trying to squash Snapchat by more or less ripping it off – is already said to have 200 million daily users itself.

Another factor which could be driving users away from Snapchat, is the fact that Facebook and Instagram have copied numerous features from Snapchat over the past 12 months. The company generated $0.90 with each user in Q1 of 2017. DAUs increased 5 per cent quarter-over-quarter, from 158 million in Q4 2016. Snap is in its early monetization phase, and investors and analysts were expecting a continued growth.

“They need to acquire the next Snapchat – companies that are doing one thing right”, Britton said.

Snap Inc (NYSE:SNAP) shares have fallen by a huge 23 percent in after-hours trading. Its share price fell about 24 per cent, and problems keep on coming. Co-founder and chief executive Evan Spiegel received a $750 million bonus for taking the company public. This would mean that Snap sold less than 62,000 Spectacles during the quarter.