Snap Just Can’t Get Earnings Right
Snap Inc. (NYSE: SNAP) released its most recent quarterly results after the markets closed on Thursday. The company posted a net loss of $0.16 per share and $182 million in revenue, versus consensus estimates from Thomson Reuters that called for…
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Snap Inc. (NYSE: SNAP) released its most recent quarterly results after markets closed Thursday. The company posted a net loss of $0.16 per share and $182 million in revenue versus consensus estimates from Thomson Reuters that called for a net loss of $0.15 per share and $186.22 million in revenue. The second quarter from last year had a net loss of $0.13 per share and $71.8 million in revenue.
Daily active users (DAUs) grew from to 173 million from 143 million in the second quarter of 2016, an increase of 30.5 million or 21% year-over-year. DAUs increased 7.3 million or 4% sequentially, from 166 million in the first quarter 2017.
Average revenue per user (ARPU) was $1.05, an increase of 109% over the second quarter of last year when ARPU was $0.50. ARPU increased 16% sequentially when ARPU was $0.90.
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Hosting costs per DAU were $0.61 in the second quarter, as compared to $0.55 in 2016 and $0.60 in the first quarter of this year.
On the books, cash, cash equivalents, and marketable securities totaled $2.8 billion at the end of the quarter, compared with $987.4 million at the end of the previous fiscal year.
Shares of Snap closed at $13.77 on Thursday, with a consensus analyst price target of $19.05 and a 52-week range of $11.91 to $29.44. Following the release of the earnings report, the stock was down 8% at $12.66 in the after-hours trading session.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
