Snap Inc Q4 Quarterly Results Much Improved Yet Still Fundamentally Challenged
The 20,000 Foot View: Snap Inc’s 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 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 of ad inventory, and a welcome return to significant daily active user growth of year-on-year. However, losses continue to escalate, with net losses up by quarter-on-quarter which means the stated target of becoming a billion annual revenue company before the fifth anniversary of its IPO remains an arbitrary measure of success for Snap.
- The DAU base grew from million in 2017 to million in 2017
- Year-on-year DAU growth was with an increase of million DAUs
- Total revenues increased by from million in 2017 to million in 2017
- Total costs declined by from million in 2017 to million in of Snap ad impressions are now delivered through its automated auction platform, up from in revenue per user in was – a increase on revenue
Companies and brands mentioned in this report: Snap Inc, Snapchat, Facebook, Twitter