Snap stock is tanking again.
Snapchat’s redesign is having an impact — just not the kind of impact Snap would have liked.
The company delivered poor earnings on Tuesday, missing Wall Street estimates for revenue and user growth in its attempt to deliver after a strong showing at the end of last year.
Snap reported revenue of $230.6 million, short of the $244 million analysts were looking for. In the company’s earnings release, it blamed the revenue on “seasonality and our redesign.”
Perhaps more concerning was the fact that Snapchat added just four million new users over the quarter. Analysts were hoping for a seven million user jump.
The user growth miss comes in the same quarter that Snap rolled out a highly anticipated redesign in January. Users freaked out at the time, and multiple celebrities publicly criticized the change. Snap is already considering rolling back some of the changes as part of a new test.
Snap stock is down more than 17 percent in early after-hours trading.
Snap finished last year with a bang, adding a solid 8.9 million new users, its largest jump since going public last March. The company had struggled with user growth since Facebook’s Instagram and Facebook began copying many of its best features. That momentum obviously didn’t carry over into early 2018.
Snap’s average revenue per daily active user was $1.21 this quarter. Here’s how it compares to Facebook:
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