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

» Top New Products

Persuasion Skills Black Book

Learn  powerful  Nlp  and  Hypnotic  Language  Patterns  for  Persuasion                                                                       

Production Scheduling Excel

Scheduler123  :  Excel-based  Finite  Production  Scheduling  Software.                                                                     

Wp Social Widget V2

Create  Different  Social  Media  Contents  To  Increase  Your  Social  Network  Traffic.                                         

Complete English Grammar Rules

The  Most  Comprehensive  Guide  To  English  Grammar  In  Everyday  Speech  And  Writing.                                         

Transform-37 - Focus. Aim. Achieve

Dr.Mani's  'TRANSFORM  37'  personal  development  program.                                                                                           

Chakra Tree Of Life Necklace

Get  your  FREE  Chakra  Tree  of  Life  Necklace                                                                                                                   

Fight Ready Training Program

Helps  You  Acquire  The  Power,  Strength  And  Endurance  Of  An  Elite  MMA  Fighter                                                 

How To Sell Domain Names

THE  FIRST  PLAIN  and  SIMPLE  DOMAIN  FLIPPING    and    SELL  MY  WEBSITE  GUIDE  ONLINE.                                           

Trusted FX Signals

Join  us  to  see  how  our  high  performance  trading  signals  could  revolutionize  your  Forex  Trading.         

Trump 2020 Gold Plated Coin

Show  Your  Patriotic  Support  For  Our  President  With  Gold  Plated  Presidential  Victory  Coin                       

SEOPressor - Best SEO Wordpress Plugin

A  tool  that  will  turn  your  WordPress  site  into  a  powerful  marketing  machine                                                 

Cat spraying no more

Learn  how  to  stop  your  cat  peeing  outside  the  litter  box                                                                                       


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.