Dipti Gore
Image: Reuters
10 May 2017 , California : Snap, the parent company of Snapchat,who went public in March this year has reported their earnings for the first time since going public and the numbers do not look good. Snapchat shares were down almost 25% in after hours trading.
The company has reported 166 million daily active users, a 5% increase from the last quarter and a 36% Y-o-Y increase. However Instagram stories, a feature launched by Facebook owned Instagram which copies heavily from Snapchat has reported 200 million daily active users. Instagram stories was launched only a few months ago.
The company revenues increased to about $150 million a 300% increase in the first quarter. Out of this $8million came from sale of spectacles, a hardware product that the company has introduced. The company however is no where close to achieving profitability.
Snap has reported a loss of $2.2 billion in the first quarter.
Snapchat has been facing massive competition from Facebook recently with the company owned Instagram introducing Instagram stories. When questioned about this competition with Facebook Spiegel said that “Just because Yahoo has a search box doesn’t mean they’re Google.”