Source: Campaign
Snap Inc. has published its Q2 2018 report, indicating some good business results, but also disappointing user growth that fell below expectations.
Parent company of Snapchat saw advertising revenue grow by 44%, to $262m in the second quarter of 2018, compared with $182m in Q2 2017.
Their daily active users increased by 8% to 188 million, and average revenue per user increased 34% to $1.40 worldwide. For comparison, Facebook’s average revenue per user was $5.97 worldwide, according to its latest earnings report.
Due to the disappointing growth of daily active users, falling short of analyst expectations, shortly after the report was announced Wall Street demoted the stock of the company. Analysts had expected 193 million DAUs, and the 188 million figure represents a 2% decline compared with Q1 2018. However, the company stock quickly recovered after Prince Alwaleed bin Talal of the Kingdom of Saudi Arabia announced a $250m investment for a 2.3% stake in the company, rising by nearly 13%.
