Despite losing millions of users in cardiovascular syndrome, Snap Inc., Snapchat’s parent company, hopes to post-trade after reporting strong Q2 growth on Tuesday.
Snap reported a loss of 14 cents per share and revenues of $ 262 million for the three months ending June 30 – less than 17 cents per share Wall Street analysts had projected and easily exceeded their sales estimate of 250 million dollar. Revenues increased by 44 percent compared with the previous year.
Most obviously, however, the direction of Snapchat’s user base was trending. Snap reported that it had 188 million daily active users – a decrease of 3 million users since last quarter. It was the first time Snap went public in early 201
7, it has reported a decrease of users. It also points to the app’s battle to ward off its Instagram Instagram, as it continues to copy many important Snapchat features.
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However, Wall Street did not seem to think, however, with stocks jumping 7 percent in early after-trade.
Snap CEO and co-founder Evan Spiegel pointed to the app’s highly malignant redesign as a cause of its drop in users.
“It has been about six months since we have worked out the redesign of our application, and we have worked hard to iterate and improve Snapchat based on feedback from our society,” said Spiegel in his prepared comments that accompany the profit. “We feel that we have now taken up the biggest frustrations we’ve heard and are keen to make more progress on the huge opportunity we now have to show more of the right content to the right people.”
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The Snap Snapchat Silver Feed That Made More Money From The Users. The app pulled $ 1.40 in average revenue per user – an increase of 34 percent the year before – indicating that the app does a better job to connect advertisers to its users.
The mirror also pointed to their stories from their publishing partners who received more engagement, with an increase of 15 percent annually.
The company will hold a call to discuss its result at 17:00 ET.
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