San Francisco: Snap Inc announced that quarterly sales exceeded expectations, but Snapchat users' first day use decreased.
Prince Alwaleed Prince Talal in Saudi Arabia announced immediately after confirmed a deal of $ 250 million in May to purchase Snapchat's 2.3%.
The snap share was up by more than 12% in non-business hours trading. They were last at about 1%. Snap has spent most of the budget of Snapchat advertisement on key advertisers and has strived to persuade them to mainly appeal to users of 18 to 34 years of age and to exceed analysts' predictions.
However Snap said SnapCat's day-to-day users have decreased from 191 million in the first quarter to 118 million in the first quarter, according to Snap.
Snap redesigned the application so that users interact with more ad supported videos. General manager Evan Spiegel said in remarks that redesign is the main reason for use but he believes the change to increase the number of key content viewers funded by this year's advertisement The re.
"We believe that contributing to the growth of engagement in the future is an important evolution of our products," Snapchat spends more than 30 minutes on average every day.
According to Thomson Reuters I / B / E / S, Snap did not record a daily user quarterly decrease according to the data released of 2020.
The company records the number of users per month, but we do not disclose this number.
The growth of Snap users has declined sharply in the past two years. The bigger rival Facebook Inc. has recreated the functionality of Snapchat, including self-service virtual animal filter and "story" format for content sharing.
Snapchat was redesigned in February, and many videos that caused protest action by users who are hard to find the content desired by users have come to be seen. In the results of the first quarter, he said that he will re-adjust the way to present the content.
Recent Facebook and Twitter Inc. results are surprising social media investors by pointing out problems related to data privacy, malicious content, fictitious accounts with heavy user growth and mailing costs. Both companies lost about 19% of the value after publication, and the results also burdened the Snap shares.
Snap has lost approximately 1 million users in three regions (North America, Europe and the rest of the world).
Its second quarter revenue was $ 243 million, an average of more than $ 25 million, with the average revenue per user rose from $ 1.05 to 1.40 dollars last year. The quarterly snapshot was $ 335 million, or 27 cents a share.
A snap that has never experienced profitable quarters was released in March 2017 with a stock price of $ 17. Stock price soared shortly after IPO, but then lost 50%.
Although Snapchat is popular in private messaging, most advertisements sold by Snap are accompanied by videos that are shared with a wide audience. Reforms to bring more public content to the front aroused user reactions earlier this year.
By increasing the way advertisers buy ads, this year we are gathering small brands seeking cheap business hours to increase sales.
However, with this change, Snapchat has become difficult to obtain high price distinctly from other video applications.
Snap was challenged by Facebook's competition of Instagram which has more than 1 billion users and has the same function as Snapchat.