×
You will be redirected back to your article in seconds

Snapchat Loses 3 Million Daily Users, but Beats Expectations in Q2 Earnings

Investors sent Snap’s stock on a rollercoaster ride Tuesday following the company’s Q2 2018 earnings release: Share prices for Snapchat’s corporate parent gained more than 10% immediately following the release of news that the company beat analysts’ revenue and earnings estimates, and that Saudi prince Alwaleed bin Talal had acquired a 2.3% stake in the company with a $250 million investment.

But the share prices gave up much of those gains soon after, as the news sunk in that the company’s user base wasn’t growing as expected, with Snapchat losing daily active users quarter-over-quarter for the first time in its history.

Snapchat ended the quarter with an average of 188 million daily active users, compared to 191 million at the end of Q1. Snap CEO Evan Spiegel blamed the decline on “the disruption caused by our redesign” in prepared remarks for Tuesday’s earnings call. That redesign, which the company had launched at the beginning of this year, had led to a widespread backlash, which included celebrities like Kylie Jenner and Chrissy Teigen publicly chastising the company.

On Tuesday, Spiegel said the company had responded to the backlash against the redesign: “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,” he said.

The company also tried to deflect from its growth problems by announcing that it had 100 million monthly active users in North America at the end of the quarter. Snap previously didn’t disclose any monthly user numbers, with executives arguing that daily actives better reflected the activity on the platform.

Snap generated some $262.26 million in revenue during the quarter ending June 30, compared to $181.67 million during the same quarter a year ago. Net losses came in at $353.31 million, compared to $443.09 million a year ago. This translates to a net loss of $0.14 per share, compared to net losses of $0.16 per share in Q2 of 2017.

Analysts had expected net losses of $0.17 per share in revenue of $251.19 million. The company had previously warned that its revenue growth would decelerate in Q2.

Other highlights from Tuesday’s earnings release:

  • Snapchat users spend 30 minutes per day on average using the app, and generated over 3 billion snaps per day.
  • Eleven of Snapchat’s shows reached an audience of over 10 million users during the quarter, compared to seven shows in Q1.
  • Average revenue per user came in at $1.40, compared to $1.05 a year ago.
  • Snap only brought in $2 million in non-advertising revenue. That’s despite the introduction of a new model of Spectacles this quarter. “We are learning a lot as we continue to iterate based on customer feedback,” Spiegel said about the smart glasses.

More Digital

  • Murder Mystery

    Netflix Reveals Record-Breaking Stats for Sandler-Aniston 'Murder Mystery' Flick

    “Murder Mystery,” the latest Adam Sandler film to debut on Netflix, broke viewing records on the streaming service, the company revealed Tuesday. The film, which is co-headlined by Jennifer Aniston, was seen by close to 30.9 million households in its first 3 days, according to a tweet sent out Tuesday afternoon. 🚨ADAM SANDLER AND JENNIFER [...]

  • Charles Caldas To Step Down as

    Charles Caldas To Step Down as Merlin CEO

    Charles Caldas, the only CEO that the independent-label collective Merlin has ever known, announced today that he will step down from his post at the end of 2019, after more than 12 years at the helm of the global rights organization. He will continue his current duties until then and work with the Merlin board to [...]

  • Vice Media Digital Makeover Triggers Traffic

    Vice Media Digital Makeover Triggers Traffic Slide

    Life on its own online isn’t easy for Vice Media. Ending the digital publisher’s controversial practice of rolling up web traffic for partner sites into an aggregated number resulted in the total domestic traffic falling nearly by half between March 2019 and the following month, according to Comscore. The numbers improved slightly for May, when [...]

  • Merlin Reports Record Distributions for 2019

    Merlin Reports Record Distributions for 2019

    Global indie-label collective Merlin reported record distributions in its 2019 membership report, paying $845 million to label and distributor members between April 2018 and March of this year. That figure, a 63% year-over-year increase, includes more than $130 million paid out this year from non-royalty income — and included in that figure is the estimated [...]

  • Sarah Iooss - Twitch

    Twitch Hires Sarah Iooss, Former Mic and Viacom Exec, as Head of North America Sales

    Twitch has tapped Sarah Iooss, most recently EVP of revenue at millennial-news startup Mic, to lead the advertising sales team in North America for the Amazon-owned live-streaming video platform focused on video gaming. Iooss will be based in New York, reporting to chief revenue officer Walker Jacobs, who joined Twitch last fall after serving as [...]

  • Calibra app

    Spotify: Facebook's Libra Cryptocurrency Will Help Subscription Services

    When Facebook officially announced its plans for a new cryptocurrency called Libra Tuesday, it also revealed that Spotify was part of a consortium of companies called the Libra Association that is backing the project. The music service hopes that digital money can help subscription services sign up new customers. “One challenge for Spotify and its [...]

  • And Then We Danced

    Swedish Outfit French Quarter Steps Into TV With Graphic Novel Adaptation

    Swedish production company French Quarter, the outfit behind Cannes Directors’ Fortnight entry “And Then We Danced,” is venturing into TV with a web series adapted from Henrik Bromander’s graphic novel “Kurs I självutplåning” (“Course in self-annihilation”). The comedy series has been commissioned by the Swedish broadcaster SVT, as first reported by Nordic Film & TV [...]

More From Our Brands

Access exclusive content