Snapchat’s parent company Snap reported its latest quarterly financial results overnight, and the sight of its share-price plummeting tells you what the markets thought of the figures.
The company’s revenues were up 153% year-on-year to $181.7m, but its net losses increased even more sharply: from $115.9m in Q2 last year to $443.1m last quarter. The problem for Wall Street is that analyst had predicted higher revenues and smaller losses for the quarter.
Meanwhile, Snapchat averaged 173 million daily active users (DAUs) last quarter, up 21% year-on-year and 4% quarter-on-quarter. There continue to be concerns about the impact that Instagram’s growth (and adoption of key Snapchat features) is having on Snapchat’s ability to pick up new users and keep its existing ones engaged.
During Snap’s earnings call, some of the figures highlighted as positives will have raised a smile – 1.5bn views of a dancing hot-dog lens, the hero of which CEO Evan Spiegel described as the “first augmented reality superstar” – which we suspect Pikachu will have something to say about.
But more generally, good news was rather thin on the ground for Snap, as it plots its future growth.