For the quarter ending in June, analysts on average expect US$187 million in revenue and an adjusted loss of 14 cents USA per share, according to Thomson Reuters data.
Missed revenue estimates. The company saw revenue figures of $181.67 million, missing our consensus estimate of $186.91 million. Edge Wealth Management LLC purchased a new stake in shares of Snap during the first quarter worth about $257,000. That one-ups Instagram for teens, where under-25s spend more than 30 minutes per day, but falls short of Instagram's older age group that uses it for 24 minutes per day. The company lost 14 cents per share of SNAP stock in the same quarter a year earlier, on revenue of $71.8 million.
Snapchat also wanted analysts to pay attention to the growth in North America, where the users are more valuable.
To reassure skittish investors, Snap cofounders Spiegel and Bobby Murphy pledged to not sell their shares this year.
Around the upcoming earnings release, options traders have priced in about a 13.3% potential share price move in either direction, according to the Market Maker Move indicator on the thinkorswim® platform. Perhaps that is why the company considered losses almost quadrupling from the same quarter a year ago "not meaningful", while gains in revenue were not labeled the same. Vetr lowered Snap from a "buy" rating to a "hold" rating and set a $22.54 price objective on the stock.in a research note on Thursday, April 27th. Some investors believe that on an analyst conference call following the quarterly report, Spiegel may reassure investors that he has no immediate plans to sell. The firm is held to a Silicon Valley-sized standard where celebration is only warranted if growth in users and revenue is fantastic. Since going public in March, shares have declined past the company's initial public offering (IPO) price of $17 and recently hit a new low of $11.91 on August 3.
Sales of Spectacles, Snap's eyeglasses with built-in cameras, fell during the second quarter, per Drew Vollero, the company's chief financial officer. Instagram began mimicking Snapchat's key features past year and boasts a much larger following - 250 million people daily use Instagram Stories, a feature developed by Snapchat that allows users to post disappearing pictures and videos for a 24 hour period. Snapchat's goofy dancing hot dog lens, which overlays a funky frankfurter onto a person's selfies or surroundings, has been viewed 1.5 billion times in snaps, Spiegel said.
Despite its struggles, some Snap watchers remain optimistic about the company's future. "Now marketers will need Snap to help them measure the performance of their ads".
A number of other research analysts have also weighed in on SNAP. Headcount in the second quarter grew 10 percent to 2,600, down from the 27 percent growth rate in the previous quarter. The firm now has $13.84 price objective on the stock.
Daily active users were up 21% year-over-year to 173 million.