Evan Spiegel, co-founder and CEO of Snap Inc., stands on the floor of the New York Stock Exchange during the company’s initial public offering on March 2, 2017.
Michael Nagle | Bloomberg Getty Images
Snap’s stock price initially fell more than 11% on Tuesday after the company’s second-quarter earnings, then fell marginally as investors digested positive user and revenue growth.
Here he explained:
- Loss per share: 9 cents Vs 9 cents per refinitiv
- Revenue: $ 454 million Vs Refinitiv per $ 439.1 million
- Global Daily Active Users (DAU): 238 million vs 238.48 million per factset
- ARPU: $ 1.91 vs $ 1.87 per factset
The company’s net loss increased to $ 326 million, up nearly 28% from $ 255 million last year.
Snap blamed high losses on long-term investments “for building on the momentum established with our community and our advertising partners”, as well as high interest expense related to convertible notes, and one-time gains from sales. Held. , A location-based user data provider in the year-ago quarter.
Snap reported its daily active users at 238 million, up nearly 4% from the 229 million reported in April. The figure is up 17% compared to 203 million daily users, the company reported a year earlier.
After seeing an increase in the use of shelter in place orders in March, that boon went away, Snap chief financial officer Derek Anderson said in his prepared remarks.
“At the beginning of widespread shelter in place orders, as people sought to stay connected and entertained from home, we saw an increase in daily active users that informed our initial estimate,” Anderson said. “We have maintained shelter in place conditions as we feared this initial lift spread faster.”
The company said that so far in Q3, revenue is up 32% from the previous year, but it expects moderate growth to end through the rest of the quarter, with growth of about 20%.
Anderson said, “Advertising demand in Q3 has historically been beset by factors that are unlikely to materialize in the same way in earlier years, including school seasons, film release schedules, and the operation of various sports leagues Huh.” “At this time it is difficult to predict how these factors may affect advertising demand in the remainder of Q3.”