Despite the decline in active monthly users, Snapchat saw its revenues jump to $262.3 million, up by 44 percent from the same quarter a year ago. That 188 million daily active user number is 8 percent higher than this time previous year, and CFO Tim Stone said that monthly active users are now up to 100 million in USA and Canada. That's a 44 percent year-over-year increase and an 11.9 percent increase from last quarter. Snap shares jumped as much as 14 percent following the announcements.
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. On two occasions, they plunged more than 20% after results were announced.
The prince had previously been rumoured to be interested in investing in Snap prior to its IPO, though in 2015 a source told Reuters there were "no plans to invest". Shares closed at $13.12, up 7 cents, for the regular session. CNN reports that this is the first time Snapchat's user count has dropped since Snap Inc went public.
Snap said Tuesday that third-quarter revenue would be $265 million to $290 million.
Snap became the latest social-media company to post disappointing user growth in the second-quarter after sluggish numbers from Facebook Inc. and Twitter Inc. last month caused stock plunges. Both companies shed some 19 percent in market value after reporting. "The number of people that watch Publisher Stories and Shows on iOS every day has grown by more than 15 percent this year", said Spiegel.
"We thought the commentary around the Android rebuild indicated that we might be waiting about a year before we can expect to see the benefit from those efforts (and in the near term, DAUs should be down again next quarter)", Mark Kelley, an analyst at Nomura Instinet, said in a note to clients Wednesday.
However it beat analyst expectations on revenue to rake in $262m over the last three months, indicating that while users may not be too keen on its Snapchat product since its design overhaul, advertisers are thinking differently.
Employees had griped about Snap's network of small, spread out offices in Venice.
- Fallout 76 Won't Be On Steam, New Beta Details Revealed
- State farm organisations welcome $190m Federal drought support package
- Head of Syrian regime research centre killed
- Suspected Russian spy reportedly worked for years at U.S. embassy in Moscow
- Meghan Markle has reportedly planned a 'secret United States reunion' with her dad
- Pentagon bars troops from using fitness trackers & geolocation services
- Subtropical Storm Debby forms in north Atlantic
- Samsung starts producing high-capacity 4-bit SSD
- NASA announces crew for the first American spacecraft launches since 2011
- USA is 'unreliable', Rouhani says in meeting with North Korean FM