Homepage / Technology / Snap is expected to show more users — but still big losses — when it reports after the bell
Bonver Casino Cz Hrací Automaty S Bonusem Zdarm Magazyn Żużel Speedway W Polsce I Na Świeci Zakłady Sportowe Online Autógrafo Bukmacherska 1xbe “Pin-up O Melhor Cassino Do Brasil Web Site Oficial ᐈ Jogar Caça-níquei Zakłady Sportowe Online Obstawiaj U Bukmachera Gg Be What Industries Use Virtual Data Room? Advantages of a Data Room What Does a Board Room Provider Do? Data Room Analysis for Venture Capital Funding The Importance of Board Reporting Software Safe Uploading and Downloading Business Files How to Select the Best Board Management Software How to Organize the Work of a Company “gerçek Parayla En Iyi Slot Makineleri Ve Spor Bahisler Which is the Best Podcast For Stock Market Beginners? Virtual Data Room Facts How to Protect Confidential Documents for Boards Advantages of Online Meetings Business Issues to Consider When Choosing a Data Room Provider What Is a Data Room? Virtual Board Room Software Due Diligence Risk Factors How to Choose a Reliable Tool for Data Exchange test Users535352253 Board Software and VDR Programs Business Operations Management Software Keep Data Safe and Protect Your Business Data How to Conduct a Board Self-Assessment Uncomplicated Ways to Simplify Daily Business Transactions Due Diligence Blog Digital Data Rooms for the Netherlands The New Era of Business Software and Reporting What Types of Businesses Use VDR Software? Ma Analysis Mistakes The Corporate Governance Role Board Room Apps Secure Board Management With Secure Board Portals What Happens at Board of Directors Meetings? Board Room Software Review How to Prepare Board Rooms for Effective Board Meetings Board Room Software Boosts Performance and Communication Selecting a Secure Data Room Review Local Data Room Service Review How to Find the Best Virtual Data Room Review What to Look for in a Data Room uk Provider Document Storage and Distribution Software Everything About VDRs Corporate Software Advantages How to Choose a Virtual Data Room Provider The Most Secure Way to Transfer Files How to Manage Online Board Meetings Benefits Virtual Data Room Solutions – Must-Haves for M&A and Due Diligence Best Data Room Functions for the Different Types of Industries How to Choose a VDR Software Provider How to Choose an Online Board Portal The Benefits of a Boardroom Review Board Room Online Solutions – How to Get the Most Out of Your Board Meetings Why You Need a Board Room How a Board Room Blog Can Transform Your Business Choosing the Best Board Room Format How to Have Productive and Engaging Board Directors Meetings Choosing the Right Virtual Data Room How to Keep Safe Documents Storage Teaching Kids About Online Safety Avoid Costly Mistakes With Free Data Room Services Corporate Virtual Data Unlimited Data Room Software For Due Diligence Leading Business Software Features to Look For Secure Online Data Rooms Solutions How to Keep Share, Edit and Delete Your Data Safe Virtual Data Room Software Secrets for M&A Due Diligence What to Look For in Boardroom Providers Board of Directors Blog Posts How to Deliver Value at Your Board Meetings How to Have Effective Board Meetings Responsibilities of Board Members Deal Management – How to Effectively Manage a Complex Sales Pipeline Data Rooms For Mergers And Acquisitions How to Have a Successful Board Room Meeting Choosing a Board Room Service Provider What is a Board Room Service? Board Room Software Review – Choosing the Best Portal for Mother Board Meetings Why a Board Room Providers Review Is Important What Is a Board Room Review? Venture Software for VC Firms What Is an Assessment Report? The Importance of a Tech Audit Popular Business Applications What to Look For in a Data Room App What Are Business Applications? How to Choose a Virtual Data Room How to Plan a Data Room Review Coronavirus Guide What is a Virtual Data Room? What Is Data Science? What Is an Operating System? Turbotax Small Business Review How Online VDRs Are Used in M&A Deals Why Choose VDR Software?


Snap is expected to show more users — but still big losses — when it reports after the bell

After disappointing Wall Street out of the gate, Thursday is Snap’s chance to snatch back its status as a social media darling.

Snap will report second-quarter financial results after the bell, when analysts expect the company to add more users than last quarter. That could show investors that the company — which is still expected to lose millions of dollars this quarter — is still growing its user base quickly.

The company is estimated to report about 174.61 million daily active users for its disappearing message app, adding more than 9 million daily active users from last quarter, according to FactSet. That would be a faster pace of growth than the 5 million daily users added in the fourth quarter and the 8 million added in the first quarter.

Snapchat uses advertising — like short video clips and augmented reality filters — to make money, so a growing pool of users means there’s a growing number of eyeballs that will see those ads.

Indeed, Snap’s second-quarter revenue is expected to be way up from a year ago: Analysts polled by Thomson Reuters expect revenue of $186.2 million, up from $71.8 million in the year-ago period.

But that’s not necessarily enough to cover Snap’s ballooning expenses. Snap is expected to post an adjusted loss of 14 cents per share, according to a Thomson Reuters consensus estimate.

The second quarter report will be Wall Street’s first look at a more stripped-down version of Snap’s expenses as a public company. Last quarter, Snap booked a net loss of $2.2 billion, driven by $2 billion in IPO-related expenses. But over the past few years, Snap has also shelled out on marketing, R&D and new hires, according to its IPO prospectus.

Snap’s lively March IPO was considered a rousing success at the time, with shares jumping 44 percent on the first trading day. The fervor was fueled, in part, by the app’s explosive user growth and revenue growth. In the second quarter of last year, Snap had an average of 143 million daily active users, with revenue of about 50 cents per user, its IPO prospectus said. In Thursday’s report, analysts surveyed by FactSet expect that average revenue per user to rise to $1.07.

But since the public offering, shares have been under pressure, falling nearly 41 percent over the past three months. Snap’s first-quarter user and revenue growth came in below analyst expectations in May, with 166 million global daily active users and sales of $150 million.

Enthusiasm has waned among Wall Street analysts, including IPO underwriter Morgan Stanley.

The end of August also signals the wind-down of Snap’s lockup period, when insiders and early investors will finally be able to trade their shares on the public market. It’s a time that often pressures stocks as investors look for signs that the core backers still believe in the company’s long-term value. In the month before the lockup expiration for Facebook, Twitter and LinkedIn, their stocks were down by an average of 24 percent, according to MKM derivatives strategist Jim Strugger.

But so far, no Snap insiders have declared major changes to their share holdings with the Securities and Exchange Commission.

CEO Evan Spiegel didn’t waver addressing competition last quarter, telling analysts in a conference call: “People are going to copy your product if you build great stuff…Just because Yahoo has a search box doesn’t make it Google.”

Spiegel has tried to focus investors on the app’s daily engagement, with young users opening the app more than 10 times a day and spending 20 minutes or more. But multiple agencies have told CNBC that interest in Snapchat among advertisers is flat to declining as many influencers and creative agencies look to Facebook’s Instagram.

Instagram has recently added the disappearing images that Snapchat is known for, as well as animated face mask effects. Facebook CEO Mark Zuckerberg has signaled serious intent to overtake Snapchat in augmented reality as well.

Google, to a lesser extent, could also prove a rival to Snap, given its dominance in digital search advertising. Google’s mobile app now features a feed that mimics Facebook’s social network. Google is also in talks to create a quick-loading media platform similar to Snapchat’s Discover, according to The Wall Street Journal.

Google’s Android platform has already proven troublesome for Snapchat. During Snap’s pre-IPO roadshow, Spiegel attributed slowing user growth to challenges from Android’s low-end devices.

With most of its customers on iPhones (at least as of earlier this year), Snap is also beholden to Apple. Although Apple does not make money from advertising, the company’s upcoming software updates signal that it has bold ambitions for augmented reality in the next iPhone. It’s possible new features might have the potential distract users from Snap’s hallmark Lenses, which impose shape-shifting filters, like puppies or glasses, over faces and objects.

Nonetheless, some in the industry remain optimistic about Snap’s competitive position.

Martin Sorrell, the CEO of advertising giant WPP, told CNBC’s “Squawk Box” this month that his company plans to double its spending on Snap this year.

—CNBC’s Michelle Castillo, Berkeley Lovelace, Thomas Franck and John Shinal contributed to this report.

Source: Tech CNBC
Snap is expected to show more users — but still big losses — when it reports after the bell

Comments are closed.