Snap sinks in the second quarter, recording an almost quadrupling loss compared to the same period last year, lower than expected revenues and user growth that has not convinced analysts, as well as the sales generated for each user. Yesterday the stock came to yield more than 14% after the market (after its first quarterly as a listed company it had lost more than 23%). The session ended up 1,6% at 13,77 dollars, below the 17 dollar offering price.
In detail, at the end of the three months ended last June 30, Snap recorded a loss of 443 million dollars, almost four times more than the red of 115,9 million in the same period of the previous year and beyond the loss of 366 million analysts expect.
As in the January-March period, the group saw a triple-digit boom in its revenues compared to the second quarter of 2016 but investors wanted more: Revenue grew 153% to $181,67 million against a consensus for a result of 186,8 million. There were 173 million daily active users, up 21% or 30,5 million from the April-June 2016 period.
Analyst forecasts were for 175,2 million users. In the first quarter of 2017, the increase was 7,3 million users against the 8 million expected by many analysts. Average sales per user rose 109% year over year and 16% quarterly to $1,05, 2 cents below forecasts. It's a sour note for the company as it has spent its time winning users in developed markets where advertising is more profitable.
