Snap Inc Q2 2017 Diminishing User Growth Dwarfs Revenue Increase
The 20,000 Foot View: Snap Inc’s release of its second quarter earnings has been met with negative reception from the financial sector, as the company’s 2017 financial results, which was below analyst revenue projections, led to a corresponding slump in its stock price. The increased financial scrutiny to which the company has been subjected to since its IPO in March 2017, has raised questions about the strategic wisdom of Snap Inc going public, rather than retaining the relative operational privacy of being a private company. However, in spite of wide concerns with Snap Inc’s quarterly performance, its revenue and daily active user base have continued to grow at a steady pace, with costs having declined significantly between and 2017.
- Quarterly revenue increased by from million in to million in
- Additional Daily Active Users additions has decreased from million in in to million in
- Snap continues to spend the majority of its R&D budget on its team rather than directly on R&D (Only of the budget in was on staff expenses)
- Slowing user growth is necessitating a doubling down on monetising its existing user base in North America
- R&D expenditure increased by million which represented of the R&D budget
Companies and brands mentioned: Snap Inc