Snap’s turnaround could be happening sooner than anyone expected. The company behind Snapchat announced financial results for Q4 2017, and its performance beat expectations to send the stock price surging. Investors appeared to be impressed by growth in daily active users and revenue; however, costs remain high for Snap as profitability still hasn’t been achieved. The matter of profitability aside, it was exactly the type of quarter Snap needed to silence skeptics for a bit.
Revenue year-over-year improved for both the quarter and the year. In the final months of 2017, Snap managed to generate $286 million but took a loss of $350 million. Despite the expensive loss, that’s a 72 percent improvement compared to Q4 2016. A 104 percent increase in annual revenue, meanwhile, meant Snap generated $825 million in 2017.
The loss for all of 2017 came in at $3.4 billion, a number that doesn’t come as a surprise to anyone.
Its gains are what Snap and investors should like. The number of daily active users jumped to 187 million, courtesy of 8.9 million users joining as the year came to an end. Snap says that’s the highest net additions in more than four quarters.
Advertisers leveraged Snapchat’s appeal to younger demographics during the final quarter when the holidays increase consumer spending. That helped Snap raise its average revenue per user to $1.53, which doesn’t seem like a lot until you consider how many users are on Snapchat. And it’s the growth in daily active users paired with timing that allowed Snap to generate more revenue compared to previous quarters going back to 2016.
Snap’s Spectacles didn’t get mentioned during the conference call with investors and the media. Many assume that’s because the smart glasses have been quietly killed off after hundreds of thousands of units went unsold and piled up in warehouses.
Co-founder and chief executive officer Evan Spiegel also confirmed the overhauled Snapchat app will be available to all users by the end of March.
Upon announcing the Q4 2017 earnings, Snap’s stock price soared above $17 in after-hours trading for the first time since July of last year. The momentum continued on Wednesday morning with the stock price approaching $20. Now the big question will be if Snap can maintain interest from advertisers with its user base growing again.
The Galaxy S20 Ultra's Space Zoom camera is amazing and a bit creepy
The Galaxy S20 Ultra supports up to 100X zoom, which Samsung calls Space Zoom, but is it any good? Can a phone really product usable photos at 100x zoom? We've got our Galaxy S20 Ultra already so join us to find out!
Win an iPhone, iPad and Apple Watch with the Reader's Choice giveaway!
What's the best phone of 2019? Is it the iPhone 11 Pro, Pixel 4 or OnePlus 7T? What about the best laptop, games console, tablet and more? Vote NOW in the Reader's Choice awards and win BIG in time for the holidays!
Here are the best products from IFA 2019!
Here are the products announced at IFA 2019 that were worthy of our Best of IFA 2019 awards. Also featuring MrMobile's single best product at the show!
Solve all of your problems, add the perfect calculator to your life
With the right calculator, everything adds up! Whether you need a basic model or one with more advanced functions, there is a calculator that will meet your functional requirements.