• News
  • Finance

Duopoly Safe For Now As Snap's First Earnings Disappoint

Duopoly Safe For Now As Snap's First Earnings Disappoint

Snap is still accusing more and more revenue - with a 300 percent increase in the a year ago, coming out to $150 million this past quarter - but that's still behind expectations of $158 million. It also said that the company lost $2.31 per share, though most of that was due to expenses related to stock-based compensation. The company added more users this quarter than it did during the fourth quarter of 2016, when it grew by just 5 million DAUs.

Analysts from J.P. Morgan anticipated Snap's DAUs to increase to 169 million by the end of the first quarter. The company generated $0.90 with each user in Q1 of 2017. Earnings came in at $295 million, or 12 cents a share, while sales rose 32 percent to $1.18 billion, meeting consensus estimates of 12 cents a share on revenue of $1.15 billion.

Unfortunately for Snap, Instagram has 700 million monthly users, while Snapchat has 166 million daily users. Snapchat shares were down nearly 25% in after hours trading. Even though revenue had increased by almost 700% the previous year, the company's net losses also increased to the tune of over $500 million.

Snapchat is battling Facebook for users on multiple fronts.




Facebook Inc had also plunged after posting results for the first time in 2012, but has since ensconced itself as a Wall Street darling by transforming the company into an advertising giant. Net additional users increased 54% worldwide since Q4 previous year, said Snap founder and CEO Evan Spiegel.

"We still have a lot of work to do but we are excited by the amount of progress we have made in such a short time", Spiegel said.

Of note is the fact that Snapchat's core feature - photos and video clips that disappear after 24 hours - has now been copied by both of Facebook's acquired social companies, Instagram and WhatsApp. "Just like how Google forced companies to develop their own search strategies, Snapchat is forcing competitors to develop a camera strategy", he added.

The slow user growth is not an insurmountable obstacle for Snapchat, but one thing is certain: any "inorganic" growth they exhibit will most likely be shadowed by Facebook, including acquiring other apps with key stand-out features.

Leave Your Comment

Leave Your Comment


Latest News

  • Trump administration sending Congress $4.1 trillion budget

    Trump administration sending Congress $4.1 trillion budget

    It invests money in infrastructure , and it proposes a modern paid parental leave program. The CBO projects US economic growth will average almost 1.9 percent over the next decade.

    Unemployment rates hit record lows in 3 states, including Arkansas

    The private sector grew by 2.3 percent or 61,700 jobs, and the public sector increased by 2.6 percent, adding 14,800 jobs. The last time the USA unemployment rate was below 4.4. percent was when it was at 4.3 percent in May 2001, Gedney said.
    Arnold Schwarzenegger Says

    Arnold Schwarzenegger Says "I'll Be Back" In Next Terminator Film

    Given the trend of nostalgia and reboots, it should come to no surprise that the Terminator franchise will be receiving more life. Speaking to Screen in Cannes, [.] Schwarzenegger confirmed that he will star in a new Terminator film produced by James Cameron.
  • Trump greeted with selfies and politics on arrival in Israel

    Trump greeted with selfies and politics on arrival in Israel

    A spokesperson for the Civil Aviation Authority of Israel told AFP he was not aware of any flight taking that course before. If negotiations were to resume, they needed to be about the core issues, not talks about talks, he said.

    Election campaigning suspended after Manchester attack

    That's the first public reaction from Ariana Grande to the explosion outside of her concert in Manchester , England Monday night. Those attacks killed 130 people, including dozens trapped inside an Eagles of Death Metal concert in the Bataclan theatre .

    Next stop for Trump is Israel, in pursuit of 'ultimate deal'

    After a visit later Tuesday to the Yad Vashem Holocaust memorial in Jerusalem , he is due to give a speech at the Israel Museum. And earlier this month, Turkish President Recep Erdogan said it would be "extremely ill-advised" for Trump to move the embassy.
  • No US involvement in deal with IS fighters: Pentagon

    He earlier said that after Tabqa is secured, the forces will continue operations to "isolate and seize Raqqa ". For weeks, policymakers in Ankara had been waiting for President Recep Tayyip Erdo─čan's meeting with U.S.
    China calls for new talks with North Korea on nukes

    China calls for new talks with North Korea on nukes

    Liu spoke to reporters after emergency Security Council consultations behind closed doors on the North's latest missile test. Under UN resolutions North Korea is barred from developing nuclear and ballistic missile technology.
    With 13 trophies, Drake dominates Billboard Music Awards

    With 13 trophies, Drake dominates Billboard Music Awards

    She recently broke Aretha Franklin's record for most songs placed on the Billboard Hot 100 chart by a female artist. Dion, who was Billboard's Icon past year , lost her husband and former manager Rene Angelil to cancer in 2016.
  • Texas Is Pushing Really Hard to Pass a 'Bathroom Bill'

    Texas Is Pushing Really Hard to Pass a 'Bathroom Bill'

    But the Democrat who put forward the bill which the amendment was attached to won't accept the changes. Senate Republicans hope to be able to vote on a bill before the August recess.
    President Rouhani Says Iranian Nation Winner of Polls

    President Rouhani Says Iranian Nation Winner of Polls

    And this is thought to have helped Mr Rouhani, who received close to 23 million votes out of the 40 million that were cast. Hashemitaba was among the first to predict an outright win for Rouhani as he offered his congratulations Saturday morning.
    Hinting at secret tapes, Trump warns ousted Federal Bureau of Investigation  director

    Hinting at secret tapes, Trump warns ousted Federal Bureau of Investigation director

    A White House spokeswoman on Thursday disputed the description of the dinner by Comey's associates. Speaking to reporters on board Air Force One, he said "We can make a fast decision".
  • United, American Airlines planes clip wings at Austin airport

    United, American Airlines planes clip wings at Austin airport

    Newark Liberty International Airport re-opened after an engine caught fire on a San Francisco-bound flight Tuesday night. Flight 1579 from Newark to San Francisco was scheduled to take off when officials said its engine caught fire.

    Evangelicals Give Hosannas to Trump Mideast Trip

    It also said the Palestinian cabinet called for more popular support for the prisoners who have been on hunger strike for 38 days. The status of Jerusalem is the subject of a longstanding US policy debate - and it showed during Trump's trip.
    Washington Capitals vs. Pittsburgh Penguins - 5/10/17 NHL Pick, Odds, and Prediction

    Washington Capitals vs. Pittsburgh Penguins - 5/10/17 NHL Pick, Odds, and Prediction

    Crosby took a nasty spill in the first period when he was slammed into the end boards head-first while he tangled with Carlson. Another stunning collapse -this one in five games- may have caused total reconstruction of the Capitals organization.
  • Venezuela: Teenager killed as mass protests rage

    Venezuela: Teenager killed as mass protests rage

    Authorities thwarted an opposition push for a referendum past year and have also delayed state gubernatorial elections. Security forces have fired tear gas and water cannon at protesters who have hurled stones, petrol bombs and excrement.
    Drake beats Adele's Billboard Music Awards record with 13 wins

    Drake beats Adele's Billboard Music Awards record with 13 wins

    Adele set her felled record in 2012 when she won awards including top artist, top female artist and top pop artist. This soaring anthem was the best-selling single of 1998 and won Dion three Billboard Music Awards back then.

    Congress committee members will 'demand' to see Comey's notes

    The alleged conversations were intercepted by US intelligence officials, according to CNN. The White House on Friday predicted that the investigation would back up Trump's account.

Breaking News



Recommended

LeBron James Breaks Michael Jordan's Playoff Scoring Record

He did it with a three-pointer late in the third quarter - the first of a string of three straight from beyond the arc. With the unblemished Warriors waiting, James opted to douse them in accolades rather than cast any barbs.

Boehner: Trump's term 'disaster,' aside from foreign affairs

In addition, he maintained the president should not use Twitter and that he "never envisioned" Trump would become president. Boehner, who retired from politics in 2015 and handed over the speakership to Paul Ryan , said he's loving the quiet life.

India to face China in Sudirman Cup badminton quarter-finals

And finally the in-form duo of Ashwini/Sikki Reddy made it 4-1 with their wonderful win over Della Haris/Rosyita Putri Sari 21-12, 21-19.

Rain and cooler weather returns Tuesday

For the rest of next week things look to stay unsettled with a 40-50% chance for scattered showers and storms each afternoon. Going into Monday , the weather service puts the likelihood of heavy rain at 100-percent, with temperatures in the mid 60s.

Graco Recalls Car Seats Over Webbing Safety Concerns

The company's My Ride 65 convertible vehicle seats failed a crash test run by the National Highway Traffic Safety Administration . Expected to start July 17, the recall reportedly comes after the NHTSA discovered the webbing problem through a series of tests.

China pressures South Korea about missile system

Moon took charge as the president of South Korea today, after the National Election Commission declared him victor yesterday. He has been cautious about the recent decision to deploy a controversial US anti-missile system in South Korea.

Riyadh, Moscow agree to extend oil output cuts

OPEC members agreed in November to cut 1.2 million barrels a day of oil production. Goldman sees US crude oil at ~$55/bbl at the end of 2017 and Brent at $57.

Trump Told Russians Firing 'Nut Job' Comey Relieved Pressure on Him

Despite agreeing to testify before the Senate Intelligence Committee, Comey declined to testify before the Judiciary Committee. The report said Comey wrote memos describing his interactions with Trump, which he believed were inappropriate.

Zuckerberg: not running for office, but wants 'to learn'

The billionaire noted that while in OH , he met with recovering heroin addicts. "They were just minding their own business like two normal people".

Farewell Triple Crown: Always Dreaming fades in Preakness

The Preakness was the first time Always Dreaming was running back on two weeks' rest; he had a five-week gap going into the Derby. It was the first career Triple Crown win for Brown. "He ran so hard in the Derby and today just wasn't his day", said Pletcher.