This afternoon, Snapchat's email application reported that it had lost more active users in the three months that ended in September than the analysts expected. In the third quarter, the number of daily active users of the application dropped from 188 million to 186 million in the second quarter.
Despite the decline, the SAD still rose from 178 million in the third quarter of 2017. However, most importantly for investors, the 186 million DAUs in the third quarter did not exceed Wall Street estimates of 187.56 million.
Tim Stone, Snapchat Chief Financial Officer, warned analysts in a conference call that the company would lose more users in the current quarter, marking three consecutive quarters of declining DAU indicators for the company.
Some of the numbers reported today exceed expectations. For example, revenue exceeded $ 283.2 million, which was expected to reach a record $ 297.7 million, an increase of 43 percent from the year's highest business value. last.
Average revenue per user increased from $ 1.17 to $ 1.60, due to growth outside North America. The net loss decreased from $ 443.2 million (36 cents per share) last year to $ 325.1 million (25 cents per share). Snap parent estimates that revenues for the current quarter will be between $ 355 million and $ 380 million by the end of the year. Analysts were looking for $ 371 million.
CEO Evan Spiegel reiterated that Snapchat is now targeting older users in the US and Europe. Jessica Liu, an analyst at Forrester, explains that one of Snap's biggest problems with the Snapchat app is that the company "has a blurry vision of how to deal with the under-30s in a crowded social media landscape flouts ". One of Snapchat's biggest rivals, Instagram, is in full swing. This is partly due to the "" feature that started on Snapchat and was better implemented on Instagram. Snapchat is still known for its Objectives feature, which allows the user to take a photo and decorate his photo with caricature images such as big, soft dog ears, a police cap with dark sunglasses and much more.
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