Snap posts big 1Q loss, higher revenue, misses expectations

Its net loss was $2.21 billion, or $2.31 per share, vs. a loss of $104.6 million, or 14 cents a share for the same period a year ago.

The biggest problem, though, was a staggering $2.2 billion in losses, up from just $104 million in the same quarter a year ago. Its user numbers also came in light. Snap said users spend an average of 30 minutes a day in the app, and that the number of ads being shown today is likely to increase, giving it headroom to boost revenue per user and move closer to profitability.

Snap ended the quarter with $3.24 billion in cash, cash equivalents, and marketable securities.

Uh-oh. Wall Street was not impressed with Snap's first earnings report. Shares of Snap have gained 9.6% in the past month, compared to the S&P 500's gain of 1.8%. He said Android users are up to 33 percent of the company's total users, from 20 percent the previous quarter, even as Snap added just 8 million users over the last three months. Ever since Facebook started copying Snapchat's Stories feature into all of its app, Snap's growth has slowed. However, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were negative at US$188.2 million, doubling losses of US$93.2 million a year earlier.

Green shows range, leads Warriors past Jazz for 2-0 lead
Although there are no emotional victories, especially in the playoffs, the Utah Jazz should take some solace in this loss. Instead of riding out Pachulia to get him his allotted minutes, Golden State's acting head coach made a judgement call.

Of note is the fact that Snapchat's core feature - photos and video clips that disappear after 24 hours - has now been copied by both of Facebook's acquired social companies, Instagram and WhatsApp. As part of its most recent earnings call, Facebook announced that the Stories clone Instagram Stories has piled up more than 200 million daily active users, a figure that outstrips Snapchat's entire user base. When Facebook tried to rip off the Snapchat stories feature during August 2016, with Instagram stories; it worked in the favor of Facebook. "But I do think at this point, we're pretty much ahead in terms of the technology that we're building".

Whether or not Spiegel should be concerned about Facebook is another question. "Just because Yahoo has a search box, doesn't mean they're Google", Spiegel added. Nevertheless, Snap Inc's performance for the Q1 of 2017 has majorly disappointed many investors and analysts.

"Right now they clearly have a loyal user base in the younger population, but the over 30 year old demographic is one of the most attractive segments for advertisers due to their spending power", Eric Kim, managing partner at venture capital firm Goodwater Capital, wrote in a report.

Still, the current rivals of Snapchat have managed to outpace it. Investors aren't happy about it - Facebook's plan worked, VentureBeat says. This is a tactic that Twitter followers will be familiar with.

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