Snapchat Loses 3 Million Daily Users, But Posts Q2 Earnings Beat

Snap will report quarterly results today Facebook and Twitter’s debacles cast a shadow

The company has not been growing well for some time now, and now for the first time is losing daily active users, dropping from 191 million in the first quarter of the year, to 188 million in the last quarter.

The disappointing user metric came as Snapchat faces mounting competition from Instagram.

On the upside, the company reported second quarter revenues of $262.3m against analyst estimates of $249.8m, up 44% over the same period a year ago, and a loss of $0.14 earnings per share against a loss estimate of $0.18.

Snap forecast third-quarter sales of $265 million to $290 million, up 27 percent to 39 percent from a year earlier, compared with 44 percent revenue growth in the second quarter. This was primarily driven by a slightly lower frequency of use among our user base due to the disruption caused by our redesign.

The platform has been under pressure from Facebook's line-up of apps, which have aggressively competed with Snapchat for millennial social media users in recent years. Snap had never before logged a quarterly drop in daily users, according to data it has released going back to 2014.

In prepared remarks in a call with analysts, CEO Evan Spiegel attributed this drop-off to the app redesign: "While our Monthly Active Users continued to grow this quarter, we saw a 2 percent decline in our Daily Active Users".

The Los Angeles company beat Wall Street's expectations for both revenue and losses.

Snap said ending leases in Venice, California, to consolidate offices a few miles north in Santa Monica cost it $3.9 million in the second quarter and would result in total expenses of $25 million to $45 million in 2018, mostly in the current quarter.

Snapchat is dogged by numerous same issues it has always been: an appeal to teens and young adults but limited attributes for significant take-up beyond those age groups.

The drop in daily active users is an unfortunate turn for the company, as it struggled with a tepid reaction to its app redesign late previous year as well as continuing problems with its Android app. Users spend an average of over 30 minutes on Snapchat every day, he added, and user retention for people older than 35 has increased more than 8 percent.

Employees had griped about Snap's network of small, spread out offices in Venice.

Related News:



Most liked

Chris Pratt’s ‘Cowboy Ninja Viking’ yanked from release schedule, delayed indefinitely
He'll also return to voice Emmet Brickowski in The Lego Movie 2 and he has the western The Kid coming up next year. As for Chopra, her future with the film remains unclear.

China tests hypersonic nuclear warhead
The aim is to make trajectories unpredictable so that it is much more hard for anti-missile defences to find, track and intercept them.

Rick Gates Forced Into Admitting Extramarital Affair by Paul Manafort’s Lawyer
This time, however, Manafort himself provided Gates the template to be used for vendor payments, according to the witness. On Tuesday, Gates did connect one part of the bank fraud charges against Manafort to his role in the Trump campaign.

Report on Eliminated Top Syrian Scientist: It Was Mossad
He said it was the fourth time in three years the Mossad has assassinated an enemy weapons engineer in a foreign country. The group has previously claimed attacks targeting officials and militia commanders inside government territory.

Metro Chairman Evans says no plans for separate cars for hate group
Evans had said that Metro was simply exploring every option to prevent violence between rally participants and counterprotesters. The rally is expected to mark the organization's one-year anniversary since their deadly rally in Charlottesville, Virginia.

Liverpool 3-1 Torino: Reds end pre-season with victory at Anfield
Liverpool completed their preparations for the new Premier League campaign with a 3-1 win over Torino at Anfield this evening. Sturridge headed in from close range after a delightful cross from summer signing Xherdan Shaqiri .

Alvarez ready for 'best in the world' after shocking Kovalev
Eleider Alvarez had spent years chasing the top light heavyweights in the world but was unable to land the fight he desired. Kovalev is 100 percent correct when he says Alvarez is hungry as this will be the first time he'll fight for a major title.

Search for missing Iowa student Mollie Tibbets continues
Fox News reported that the neighbor says a "black SUV was seen circling the Iowa neighborhood where Mollie Tibbetts was staying". Over the weekend, Mollie's mother Laura Calderwood told DailyMail .com the disappearance had left her 'in purgatory'.

Mo'unga puts Crusaders on cloud nine
The Lions' forward pack is formidable and it's rolling maul, steered by hooker Malcolm Marx, is the best in the tournament. Playing with just 35 per cent of the ball, the Crusaders somehow forged a 20-6 half-time lead.

HGTV Is Going to Save the Original Brady Bunch House
Another losing bidder was Gregory Storm, a Hollywood screenwriter and director, who replied to the same Bass tweet that Scott did. Bass said. "How can I compete with a billion dollar corporate entity?" It sounds like the sitcom home is in good hands.

Subtropical Storm Debby develops in the Atlantic
Meteorologist Melissa Dye says the southern half of the island should brace for winds of 35 miles per hour (56.3 kph) or higher. Ileana was closer to shore, centered about 155 miles (245 kilometers) south-southeast of Manzanillo.

Rodgers delivers update on Arzani’s move to Celtic
Scottish giants Celtic are closing in on signing Australian wonderkid Daniel Arzani on a season-long loan. The extra break helped me and I feel ready now to come in and help the team".

Crusaders hit back at Lions’ illegal scrum claim
When they are allowed to play to their strengths teams have battled against them so they are deserved finalists. In the only other change to the starting side, Cyle Brink replaces Lourens Erasmus at flanker.

Foetus found on American Airlines plane at LaGuardia Airport
The account later tweeted to a frustrated customer that planes may be delayed "due to the medical needs of a customer". The Port Authority deferred questions to the Queens DA's Office, which said it was looking into the matter.

Jon Favreau's 'Star Wars' Series Budget Revealed
We know Disney's Netflix-like paid streaming service is on its way, but we don't know much about the content that will arrive with it.