Snap Q3 earnings miss: From bad to the pit of despair

» Top New Products

The Attorney's Guide To Credit Repair

Stop  Living  With  The  Unnecessary  Setbacks  Of  Bad  Credit.                                                                                       

End Your Shyness For Good

Course  Is  An  Audio  Mp3  And  PDF  Program  Based  On  Real  Therapeutic  Methods.                                                     

The Ultimate Bodyweight Bundle

Discover  How  To  Rapidly  Lose  Fat,  Build  Lean  Muscle  And  Get  In  Amazing  Shape.                                             

No.1 trick to 'playing hard to get'

Learn    how  to  plant  a  'tiny  seed'  in  her  head  that  unlocks  a  hidden  desire  for  you.                                 

Audacity Flex

Learn  The  Secret  In  Mastering  Audacity  And  Developing  Your  Overall  Skills  For  Any  Recording  Software.

Learn To Salsa Dance Easily

A  Step-by-step  Downloadable  Series  From  The  Best-selling  Salsa  Dance  Company,  Salsacrazy.                     

How To Pray Effectively

Learn  how  you  can  avoid  the  pain  and    frustration  from  prayers  not  granted                                                   

Here's The Secret To Cheap Flights

Fired  Travel  Agent  Wants  Revenge  Here's  The  Secret  To  Cheap  Flights.                                                               

JPW Racing System

Want  To  Make  Over  100pts  Profit  All  From  Just  Placing  1  Bet  Per  Day?  Find  Out  How.                                   

eBook Creator Studio

Create  Amazing  eBooks    and    Reports  In  5  MINUTES  Without  Typing  A  Word                                                           

Roulette Boss

Online  roulette  is  a  computer  game  that  distributes  numbers  evenly  over  a  period  of  time.                     

Matlab Algorithmic Trading App

MATLAB  App  for  Advanced  Algorithmic  Trading  Strategies  Development  in  Minutes,  not  Months.                   


One keeps thinking things can’t get worse for Snap during its first year as a public company. Unfortunately, that’s about the only expectation Snap has managed to exceed since its spring IPO.

In fact, Snap continues to defy expectations by botching each earnings report in more spectacular fashion than the last.

This week, Snap said it had 178 million daily users, short of the 181.8 million analysts had projected. And the 2.7 increase from the previous quarters ranks as the most anemic in the company’s history.

Snap reported revenue of $ 207.9 million, up from $ 128.2 million for the same period in 2016, yet well off the $ 236.9 million analysts were expecting.

And while the 62 percent revenue jump from the same quarter a year ago would seem like a nice silver lining, the fact that Snap lost an unimaginable $ 443.2 million compared to the $ 124.2 million one year ago pretty much tarnished that victory.

Understandably, investors clobbered Snap by sending its stock down 19 percent in after-hours trading. When markets open today, Snap will be flirting with a new all-time low as investors wonder if it will ever see its $ 17 IPO price again.

What makes all of this even more painful is the growing lack of confidence in Snap’s leadership. The company announced it was writing off $ 40 million due to unsold Spectacles. Not only was the product massively overhyped, but Snap acknowledged that it bought into its own hype and over-ordered the gadgets that are now sitting around unsold and useless.

And even more fundamental than that gaffe, the company appears to be on the verge of a major pivot, an astonishing move for a company that has been public for less than a year. During an earnings call yesterday, executives said Snap’s app is going to be redesigned, hinting that it will allow for more publicly available feeds of user content, similar to Twitter or Facebook.

Once upon a time, Snap appealed to millennials with the ability to send photos and videos that were ephemeral, or disappeared after being viewed. Fun for teens. Apparently not great for attracting mainstream users and advertisers.

Now Snap is going to have to hope its core users will go along for the ride. Given the track record of its management team so far, investors and users are right to harbor deep skepticism about the company’s chances for success.


Post Author: martin

Martin is an enthusiastic programmer, a webdeveloper and a young entrepreneur. He is intereted into computers for a long time. In the age of 10 he has programmed his first website and since then he has been working on web technologies until now. He is the Founder and Editor-in-Chief of and Online Magazines. His colleagues appreciate him as a passionate workhorse, a fan of new technologies, an eternal optimist and a dreamer, but especially the soul of the team for whom he can do anything in the world.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.