Snap Stumbles In Latest Earnings Report
The share price for social media giant Snap has fallen 16% to an all time low following a disappointing earnings report for the company.
While there were some silver-linings for the company, it broadly fell short of analyst expectations for the second quarter of 2017.
The biggest such silver-lining came in the form of Snap’s average revenue-per-user, which grew to $US1.05. This growth of 109% (compared to the second quarter of 2016), helped offset some of the other numbers in the company’s latest report.
Analysts were expecting 10 million new Snap users. The company only increased their base by 7 million. Snap had previously promised to rein in last quarter’s net loss of $US116 million. In reality, it ballooned to $US443 million.
Overall, the company boasted quarterly revenues of $US181 million – a figure far outweighed by its expenditures.
While it was far from the defining factor behind the company’s ongoing struggle to attain profitability, sales of Snap’s hardware efforts were also down.
The first quarter of 2017 saw Snap generate $8 million in revenues from their Snap Spectacles. However, despite expanding the product to more markets, they only generated $5.4 million during the second quarter of the year. Based on the recommended price of the Spectacles themselves, this equates to approximately 41000 sales – or 0.02% of Snap’s total user base.