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However, revenue is increasing: Snapchat disappointed stock market with a cautious business outlook

2019-10-23T07:45:34.709Z

TIME ONLINE | News, backgrounds and debates



Santa Monica (AP) - The Snapchat photo app benefits from the fact that it has gotten its problems under control on Android smartphones.

In the past quarter, more users than expected were added, as Snapchat's operator Snap announced in Santa Monica. But from the perspective of investors, things are not going up fast enough: the forecast for the current quarter disappointed expectations, and the share fell significantly.

In the three months to the end of September the number of daily active users increased according to the data from 203 to 210 million, in the year comparison it was an increase of 13 per cent. Sales also increased surprisingly strongly with a 50% increase to 446 million dollars (401 million euros).

Although fell below the line, a loss in the amount of $ 98 million, as Snap announced after US market close. In the same period last year, however, it had been 227 million. "We delivered strong results this quarter," announced Snap CEO Evan Spiegel.

However, the numbers did not fare well in the market - the stock lost more than three percent after the stock market. Reason should have been the sales forecast for the final quarter, which was with a range of 540 to 560 million dollars below the expectations of analysts.

The Android version of Snapchat, known for its automatically fading photos after a few seconds, was far too slow and buggy. As a result, the company escaped many revenue - the dominant mobile operating system has a global market share of more than 80 percent. Only this year, the problems were fixed with a new version of the app.

Snapchat competes with Facebook's photo platform Instagram for advertising revenue. The larger rival had copied some Snapchat ideas like the Stories function in the past years and thus taken the smaller competitor additional wind from the sails. Snap has launched a new platform for advertisers to accelerate revenue growth.

Snap-release

Source: zeit

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