Snap Inc. hasn’t met investors expectations regarding user engagement, daily user growth, and revenue, according to its second quarter financial report. However, the social media company has still shown significant gains.
The average daily user count at Snapchat is now 173 million, up by 21%, but a little under the predicted 175 million investors and analysts were expecting. It’s the same for average revenue gained per user, which doubled to $1.05, but missed the $1.07 target laid down by investors ahead of the announcement.
Revenue reached $182m, under the $186m set by analysts; but net profit hit $443m. Snapchat apparently spends $3.50 for every $1 it makes in revenue. Investors had high hopes for Snapchat, and the company is taking longer to reach them than hoped.
However, with Facebook actively copying Snapchat’s best-known features and incorporating them into Instagram and even WhatsApp — with considerable success — Snapchat’s post-IPO grace period maybe almost over.