Snapchat Bounces Back With Better-Than-Expected Earnings

With some help from older users on Android.

Tech & Gadgets
3,545 1 Comments

It’s been a while since we’ve reported positive news from Snapchat since its initial public offering last year, but the social media app company has seemingly broken its losing streak. For the first time, Snap Inc. beat Wall Street and industry expectations for daily user growth and quarterly revenues — earning $825 million USD in revenue for the full year of 2017, reviving investor confidence and increasing its shares up more than 23% to $17.32 USD.

The company is still losing money, but the following key numbers from last quarter point to a more promising future for Snap that might survive competition from Instagram:
- Daily active users increased by 18% to a total of 187 million (beating average analyst expectation of 184.2 million users, according to FactSet)
- Quarterly revenue increased by 72% to $285.6 million USD (beating analyst expectations of $253.2 million USD)
- Average revenue per use increased by 46% to $1.53 USD

Other useful points to keep in mind is that Snapchat makes the majority of its revenue through advertising, and though brand advertising seasonally peaks every fourth quarter, Snap’s advertisers were notably more active on a new auction-based advertising system what made it easier and cheaper to buy ads. The company also attributes much of its growth to an improved Android user interface that makes it simpler and easier to use, “especially for older users,” CEO Evan Spiegel said. The redesign increased the amount of time users spent on the Android version of the app by 20% over the past year.

In other tech news, Facebook has a wealth algorithm based on your profile info.

Read Full Article

What to Read Next

Google to buy NYC's Chelsea Market for Over $2 Billion USD
Tech & Gadgets

Google to buy NYC's Chelsea Market for Over $2 Billion USD

That Google money…

Terry Rozier Loses adidas Contract After Wearing Nike During Shootaround
Sports

Terry Rozier Loses adidas Contract After Wearing Nike During Shootaround

Bad news for the Boston Celtics point guard.

A Behind-the-Scenes Look at Smokepurpp & Travis Scott's "Fingers Blue" Music Video
Music

A Behind-the-Scenes Look at Smokepurpp & Travis Scott's "Fingers Blue" Music Video

Lead up to the visual’s official release.

Sasquatchfabrix. x Brain Dead Collection Releases This Week
Fashion

Sasquatchfabrix. x Brain Dead Collection Releases This Week

The full product range also includes a SUICOKE collab.

fragment design & Bamford Watch Department Link up for Zenith El Primero
Watches

fragment design & Bamford Watch Department Link up for Zenith El Primero

A Dover Street Market exclusive.


A Better Look at YEEZY Season 6 Snaggy Suede Crepe Sneaker
Footwear

A Better Look at YEEZY Season 6 Snaggy Suede Crepe Sneaker

Available now.

M5 Showroom Presents Its "Image for the Modern Man" in Fall/Winter 2018 Lookbook
Fashion

M5 Showroom Presents Its "Image for the Modern Man" in Fall/Winter 2018 Lookbook

Featuring A Bush of Ghosts, Barena Venezia, Descente and more.

Aaron Bondaroff Officially Steps Down From KNOW WAVE
Art

Aaron Bondaroff Officially Steps Down From KNOW WAVE

An official statement has been released.

'Game of Thrones' Showrunners to Helm New Series of 'Star Wars' Films
Entertainment

'Game of Thrones' Showrunners to Helm New Series of 'Star Wars' Films

Even more movies are on the way.

Willy Chavarria Taps Gothic Workwear for Fall/Winter 2018
Fashion 

Willy Chavarria Taps Gothic Workwear for Fall/Winter 2018

Including an interview with the designer himself.

More ▾
 
We got you covered. Don’t miss out on the latest news by signing up for our newsletters.

By subscribing, you agree to our Terms of Use and Privacy Policy.