Snapchat in Big Trouble
For the very first time, Snapchat has revealed its earnings ever since it became a public company in March 2017. Given that the company is making efforts to persuade Wall Street that it can produce more funds than Facebook from promotions while the opponent company is constantly trenching aggressively into SnapChat’s territory.
In an official statement, the company said, “The Company generated $149.6 million in revenue in the first part this year”. It is being said that the company faced a loss of $2.31 per share, although a majority of that was because of expenses related to stock-based reimbursement.
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Investors were anticipating Snapchat to report 16 cents loss per share on revenue, but instead, the company surprisingly reported $2.31 per share. To cut the long story short, this has turned out to be a big problem for the company as the turnout was unexpected by its investors.
Tech analysts assert that the loss occurred due to the slow user growth. Additionally, co-founders of Snapchat Evan Spiegel and Bobby Murphy each one faced as a loss of more than $1 billion because of share dip. Snapchat also saw it’s slow to its lowest year-on-year growth during the past two years (adding 5 percent to hit 166 million users), and it lost revenue estimates of $158 million as it came in short at $150 million.
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After this recent dip, SnapChat’s co-founder Evan Spiegel said: “We lost revenue because of frequent social media giants replicating features from Snapchat”.
Evan further said “If you want to be an innovative company, you have got to be contented with and enjoy the fact that people copy your products if you make great stuff. Just because of Yahoo! has a search box doesn’t mean they’re Google”.
Yesterday, Snapchat rolled out another massive update which allows its users to add new “limitless” tool that allows one to take snaps without the worry of them disappearing after some time. Furthermore, emojis doodles, looping videos and the “magic eraser” tool which is able to remove unwanted objects from your photos were also a part of this new update.