Snap Inc Q4 Quarterly Results Much Improved Yet Still Fundamentally Challenged
The 20,000 Foot View: Snap Inc’s XXX results bookend the company’s dramatic first year of being a publicly listed company. 2017 was the year Snap has had to effectively admit that its rebranding as “a camera company” has, for the moment, failed to deliver—recall XXX XXX million write down of unsold Snap Spectacle inventory. This precipitated a realignment back to its messaging app origins, with a user experience redesign. It came after a frank admission by co-founder and CEO Evan Spiegel that the app was “difficult to use.” Alongside this revamp has been the increase in programmatic advertising to XXX of ad inventory, and a welcome return to significant daily active user growth of XXX year-on-year. However, losses continue to escalate, with net losses up by XXX quarter-on-quarter which means the stated target of becoming a XXX billion annual revenue company before the fifth anniversary of its IPO remains an arbitrary measure of success for Snap.
- The DAU base grew from XXX million in XXX 2017 to XXX million in XXX 2017
- Year-on-year DAU growth was XXX with an increase of XXX million DAUs
- Total revenues increased by XXX from XXX million in XXX 2017 to XXX million in XXX 2017
- Total costs declined by XXX from XXX million in XXX 2017 to XXX million in XXX XXX of Snap ad impressions are now delivered through its automated auction platform, up from XXX in XXX revenue per user in XXX was XXX – a XXX increase on XXX revenue
Companies and brands mentioned in this report: Snap Inc, Snapchat, Facebook, Twitter