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

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

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:

  • Trump administration finalizes tariffs on $16 billion in Chinese goods

    The growth rate was the strongest in almost four years, and Trump said it was further proof his economic policies were working. Trump responded with a warning that the USA would consider tariffs on another $100 billion in Chinese goods.
    Catherine Oxenberg reveals her guilt for introducing daughter to cult

    Catherine Oxenberg reveals her guilt for introducing daughter to cult

    Oxenberg said her daughter became immersed in the organization quickly and donated the majority of her inheritance to it. She was ordered held without bail and has since been released on $5 million bail.
    Master Chief to be a lead character on Showtime's Halo show

    Master Chief to be a lead character on Showtime's Halo show

    Showtime president and CEO David Nevins added that it took the network a long time to find a good script, hence the delay. In the interview with GameSpot , Levine said , "It is futuristic space-based science fiction, it is not fantasy".
  • 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.
    Musk says he may take Tesla private and shares roar

    Musk says he may take Tesla private and shares roar

    But asked if he would take legal action against Musk over the allegation, Unsworth said: 'If it's what I think it is yes'. Tesla has been public since it filed an IPO in 2010 . 'I am not a top donor to any political party, ' he said.
    Severe thunderstorm warning in effect for southwest Virginia

    Severe thunderstorm warning in effect for southwest Virginia

    After dropping hail and heavy rain in and around Colorado Springs, it would appear Mother Nature isn't done with Colorado yet. A line of thunderstorms moved through the area Monday evening prompting Severe Thunderstorm Warnings .
  • "Spider-Man: Far From Home" Will Feature Samuel L. Jackson's Nick Fury

    How all of this plays out onscreen is still anyone's guess, but if you dig Jackson as Fury, get ready to see a lot more of him. Vulture reports Jackson will be joined by Cobie Smulders as Maria Hill in the sequel to 2017's Spider-Man: Homecoming .
    Alvarez ready for 'best in the world' after shocking Kovalev

    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.
    Dubai tourist runs up $65,000 in speeding fines driving supercar

    Dubai tourist runs up $65,000 in speeding fines driving supercar

    The unidentified man reportedly broke the speed limit in a rented Lamborghini Huracán on one of the city's busiest roads. He had rented a £260,000 Lamborghini Huracan supercar at a cost of £560 per day while overseas in the country.
  • NESN broadcaster Jerry Remy diagnosed with cancer again

    NESN broadcaster Jerry Remy diagnosed with cancer again

    "The thoughts and prayers of all of us at NESN and the Red Sox are with Jerry and his family during this hard time". Before transitioning to broadcasting with NESN, Remy was best known as the Red Sox second baseman from 1978-85.

    16 people injured by softball-sized hail at Cheyenne Mountain Zoo

    One person at the zoo shared video on Instagram showing the hailstones falling as they hid in a restaurant for cover. "We're still trying to figure out the extent of the damage and what needs to be done to reopen", she said .
    ‘Kidding’: Jim Carrey Showtime Comedy Unveils New Trailer & Posters - TCA

    ‘Kidding’: Jim Carrey Showtime Comedy Unveils New Trailer & Posters - TCA

    This story of a kind man in a cruel world alternates between lovely , joyful, hilarious, disturbing and crushing. The new trailer is compelling and we can't wait to see where Carrey and company take this new series.


Most liked

D.C.-area forecast: Hot and humid, with storm chances increasing Wednesday
We should get a break from the rain in the afternoon before another round of showers and storms materialize in the evening. While no severe weather is expected, some storms still could produce some heavy rain and gusty winds reducing visibility.

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.

China Bans "Christopher Robin" Due To Pooh’s Resemblance To Its President
China, the world's second-largest film market, also limits the number of foreign-made films allowed into the country at 34 a year. No reason has been given for the decision, but it's believed to be part of a nationwide clampdown on references to author A.A.

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 .

Disney wants to reunite all Star Wars streaming rights, report says
This means that there is a possibility that Disney's streaming service will not include the original Star Wars movies. They are also reporting that part of the deal would have to include unnamed programming to replace the lost content.

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'.

I'm not heartbroken: Jennifer Aniston
In February, Aniston shocked her fans by announcing her split from husband Justin Theroux after two-and-a-half years of marriage. Jennifer finally speaks out to the tabloids and the misconceptions saying "No one knows what's going on behind closed doors.

Angelina Jolie Says Brad Pitt Hasn’t Paid ‘Meaningful’ Child Support
Pitt was later provided with cell phone numbers for each child, in order to text and call them without Jolie's supervision. Angelina Jolie has reportedly accused her estranged husband, Brad Pitt , of shirking child support payments.

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.

Female heart attack patients likely to survive if treated by women doctors
Matching female doctors to female patients "reduced the probability of death by 5.4 per cent, relative to this baseline", it said. But the gap grew starkly when the doctor was a man - 13.3 per cent of women died and 12.6 per cent of men.

Ruby Rose cast as The CW’s Batwoman
The character was first introduced in Detective Comics in 1956 and was reimagined for DC Comics' New 52 as a Jewish lesbian. Because we couldn't ask for anything better than to see Rose star as Batwoman in a solo CW series.

United Kingdom weather to stay warmer than average until October
According to the long-range forecast , during the usually cold month of October Britain could reach temperatures as high as 59F (15C).

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.

Stan Kroenke takeover a 'dreadful day for Arsenal,' say Arsenal Supporters' Trust
American majority shareholder Kroenke earlier Tuesday announced a bid to take full ownership of the club. Arsenal's majority shareholder Stan Kroenke , center, hopes to take full ownership of the club.