Snapchat reports mere 166 million daily users, growth nosedives!
- Author: Zachary Reyes May 19, 2017,
May 19, 2017, 23:17
It's bad, but not unprecedented, reports the Los Angeles Times, noting Facebook stock fell 10% and Twitter stock fell 22% following the first quarterly earnings report after an IPO.
During the investor call, CEO Evan Spiegel also took the opportunity to throw scorn on Facebook's relentless copycat strategy, dubbing it the Yahoo to its Google and suggesting it will win out as the dominant platform. The company, founded in 2011, lost more than $500 million previous year on revenue of about $400 million, it disclosed in regulatory filings. Snap's sales were up $38.8 million from a year ago - at $149.6 million in the first quarter of 2017.
Snapchat's daily active users (DAU) shot up 44 million since quarter one of 2016, coming out to 166 million by the end of March.
"If you want to be a creative company, you gotta get comfortable with, and basically enjoy the fact that people are going to copy your products if you make great stuff".
The parent company of ephemeral messaging app Snapchat missed Wall Street's expectations on all three of its most-watched metrics - earnings, revenue and user growth. And although Snapchat had a 36 per cent jump in daily active users on a year over year basis, it added just eight million new users (five per cent), from last quarter.
Ross Gerber of the investment firm Gerber Kawasaki said on Twitter: "Snap user growth is nearly zero". The slowdown of Snap's growth has coincided with the launch of Facebook-owned Instagram's "Stories" feature, which allows users to post photos and videos that disappear within 24 hours.
"I think we were a little bit late to the trend initially around making cameras the center of how sharing works", Facebook CEO Mark Zuckerberg said on an earnings call this month, without naming Snapchat.
Snap reported $149.65 million in revenue for its Q1 of 2017 Wednesday, compared to just $38.8 million for the same quarter a year ago. Stories is a valuable feature for Snapchat because it lets brands buy and place ads in between posts within someone's daily story. Snap revealed user growth has slowed considerably in its first quarter that ended March 31.