Babar Khan Javed
Nov 8, 2017

Snap Q3 earnings report disappoints investors again

Achieving 87% of the target analysts were expecting, Snap Inc struggles to establish its credibility.

Snap Q3 earnings report disappoints investors again

Snap Inc's earnings report for Q3 2017 was released this week with a net loss of $443 million, resulting in the loss of 20% of the company's stock value.

Analysts are disappointed with the American technology and social-media company, which reported year-over-year revenue of $207.9 million, a 62% increase. This was 12% lower in nominal value than investor expectations of $236.9 million.

Whereas investors expected 8 million new users, Snap Inc managed to grow its daily active users from 153 million to 178 million year over year, while the third quarter brought in 4.5 million new users.

With four products, namely Snapchat, Spectacles, Bitmoji, and Zenly, investors anticipated ecosystem growth to translate toward profitability, particularly for the hotly debated Spectacles, the AR-based hardware product line.

With over 300,000 unsold Spectacles, the hardware portfolio represents a $40 million loss for Snap Inc. One of the reasons cited was poor demand planning and that many customers who purchased the hardware ended up returning them.

There was some good news among all the gloom: Earnings per customer (EPC) grew from $1.05 in Q2 to $1.17, a 12% rise.

Related Articles

Just Published

24 minutes ago

Despite recent controversies, aesthetic diversity ...

SHANGHAI ZHAN PODCAST: Shiseido China’s Carol Zhou says that Chinese women are now more accepting of their own physical features and will be looking to beauty brands to improve them.

40 minutes ago

POSB Bank aims to reach kids early with animated tales

The Singapore bank attempts to teach financial literacy with a series of stories created by The Secret Little Agency.

43 minutes ago

The men in Mirror reel in brand deals

While reporting 29% adspend growth in Hong Kong for the full year 2021, media reporting company Admango has also documented the stunning number of brands using local boyband Mirror to push their products.

3 hours ago

MediaCom names APAC CEO to replace Mark Heap

The agency's Greater China CEO, Rupert McPetrie, will take on an expanded role leading the entire region as longtime leader Mark Heap moves to Mindshare EMEA.