{"id":9871,"date":"2017-11-07T23:05:36","date_gmt":"2017-11-07T23:05:36","guid":{"rendered":"https:\/\/rsoftsolution.com\/blog\/snapchat-share-price-craters-on-weak-revenue-and-user-growth-in-q3-2017.html"},"modified":"2017-11-07T23:05:36","modified_gmt":"2017-11-07T23:05:36","slug":"snapchat-share-price-craters-on-weak-revenue-and-user-growth-in-q3-2017","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/snapchat-share-price-craters-on-weak-revenue-and-user-growth-in-q3-2017.html","title":{"rendered":"Snapchat share price craters on weak revenue and user growth in Q3 2017"},"content":{"rendered":"


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Snap\u2019s losing streak continued with today\u2019s Q3 2017 earnings report<\/a> that saw it miss financial expectations and add just 4.5 million users. Snap earned $207.9 million in revenue with a loss of $0.14 per share, compared to expectations of a $237 million in revenue and a loss of $0.15 EPS. The 178 million total daily users equates to a 2.9% quarter-over-quarter user growth rate, it\u2019s lowest ever, and much slower than the 4.2% in Q2 and 5% in Q1. Analysts had expected 180 million users.<\/p>\n

Snap\u2019s share price closed at $15.12 today before earnings were announced. The share price fell over 16% when the awful earnings were announced, bringing the share price down to hover around $12.65. Snap will have to hope its plan for a sweeping redesign and a shift from reverse-chronological Stories list to an algorithmically personalized list<\/a> will save it.<\/p>\n

Snap lost a staggering $443 million this quarter as it struggles to improve its efficiency while growing its advertising base. The company took a $40 million charge on unsold Spectacles hardware, confirming reports of them selling worse than the company expected.<\/p>\n

Snap blamed its revenue miss on shifting from direct sales to an auction-based bidding system for selling advertisers. It hopes this will make it easier to cheaply scale its ad business in the future, but that caused a massive 60% drop in the cost per ad impression year-over-year.<\/p>\n

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Snap\u2019s average revenue per user grew 11% from $1.05 to $1.17, but stayed almost flat in the Rest Of World region, budging from $0.29 to just $0.30. In its core North American market, ARPU grew 10%. That might be the closest thing to a bright point Snap gets in this earnings report.<\/p>\n

A few other points of progress and plans for the future that CEO Evan Spiegel announced today:<\/p>\n

Snap has been working to improve the engineering of its Android app, and since April, it\u2019s reduced the average time to open its camera on Android by 20%. That\u2019s help boost Android user sign-up rates above that on iOS where Snapchat was already popular<\/p>\n