Investors had been waiting eagerly for Snap’s numbers.
The business of the online service Snapchat is growing again after a dry spell of several months. In the last quarter, the operating company Snap recorded an increase in sales of five percent to 1.19 billion dollars (1.12 billion euros) compared to the same period last year. The bottom line was that the numbers were once again in the red. The loss widened to $368.26 million from $359.5 million a year earlier, Snap said after the US market closed on Tuesday. The loss per share was $0.23, after reporting a loss per share of $0.220 in the same period last year. The analyst consensus for EPS had previously been -0.242 US dollars, meaning Snap did better than expected. The number of daily active users rose from 397 to 406 million within three months.
Snap, which once reported rapid growth quarter after quarter, has been hit hard this year by the general downturn in online advertising due to economic concerns. There were declines in sales in the first and second quarters of the year – and Snap originally forecast a decline in revenues for the past quarter as well.
In addition, Apple’s measures to better protect privacy on the iPhone messed up the ad models of many apps. App developers like Snap must ask users for permission if they want to track their behavior across different services and websites for advertising purposes. Many reject that. One consequence is that apps can no longer measure the success of advertising campaigns as accurately as they used to – and Snap was unable to get the problem under control for a long time, despite new tools for advertisers.
Snap shares temporarily fell 0.05 percent to $9.71 in Wednesday trading on the NYSE.
Editorial team finanzen.net / dpa-AFX
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