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Wednesday, December 13, 2017

Bad financial news for Snapchat continues


Since Instagram decided to launch its Stories tool, copied openly from Snapchat, things have gone from bad to worse for the ghost's social network as financial data from the second quarter of 2017 has shown. According to the figures presented, Snap Inc. lost 443 million dollars this quarter, almost 4 times more than the 116 million dollars in the second quarter of 2016.

Regarding the increase in users, the company announced 7 million more users, active every day compared to the previous quarter, leaving the final figure at 173 million, although it did not meet the expectations expected by at least another 3 million followers.
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Snapchat also loses with the Spectacles
As for the other recognized product of the company, the Spectacles, things do not go better. Snap earned $ 5.4 million in the sale of his glasses, which means he sold less than 42,000 pairs of $ 130 sunglasses in the second quarter, leaving revenue at 35% less compared to the first quarter.

However, as the CEO of the company, Evan Spiegel, said during the communication of the results, Snap is still optimistic about this product:

We continue investing in the creativity section with new lenses and tools. We are focused on the effects of the front camera for selfies, but this quarter we have announced a product designed for the back camera called World Lenses, and we have worked hard to build the underlying technology to recognize the world and place interactive objects and experiences at the center of this. It's still beginning, but we really enjoy watching our community interact with World Lenses.

Before the presentation of the results, Snap had closed at 13.69 dollars per share and immediately fell more than 16%, to be above $ 11.50. And it is that the ads left a bad taste in the mouth among investors, who expected that the reduction of the rate of growth of Snap users was only a phase and that it would recover with the efforts in marketing and strategies of the company, which They have been few.

Will Snapchat be able to keep ahead of the competition?

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