Snap, for the first time, has revealed its earnings since becoming a public company in March this year. Since then the company is trying to convince Wall Street that it can earn more money than Facebook from advertising while the rival company is penetrating aggressively into Snap’s territory.
The company in an official statement said, “The company brought $149.6 million in revenue in the first quarter this year”. It also said that the company lost $2.31 per share, though most of that was due to expenses related to stock-based compensation.
Investors were expecting the company to report 16 cents loss per share on revenue, but the company reported $2.31 per share. In short, this is a big problem for Snapchat as it was not being expected by the investors.
Tech gurus asserted that it is due to the slow user growth. Moreover, co-founders of Snapchat Evan Spiegel and Bobby Murphy each lost more than $1 billion due to share dip. The company also saw year-on-year growth slow to its lowest in the past two years (adding 5 percent to hit 166 million users), and it missed revenue forecasts of $158 million as it came in shy at $150 million.
The company’s co-founder Evan Spiegel after this recent dip said: “We lost revenue due to numerous social media giants copying features from Snapchat”.
He further said “If you want to be a creative company, you have got to be comfortable with and enjoy the fact that people copy your products if you make great stuff. Just because of Yahoo! has a search box doesn’t mean they’re Google”.
Yesterday, Snapchat has rolled out another update for its users. That update by Snapchat added new “limitless” tool that allows one to take snaps without worrying about time. Moreover, emoji doodling, looping videos and a “magic eraser” tool that removes the object from your photos were also induced in this new update.