Snap growth slows in Q1 as app redesign weighs on results

News Wireless Global 2 MAY 2018
Snap growth slows in Q1 as app redesign weighs on results
Snap reported first quarter revenues at USD 230.66 million, up 54 percent from the year before on the back of growth in Snap Ads, but down 19 percent sequentially due to seasonality and the company’s redesign of its Snapchat app. ARPU reached USD 1.21, up 34 percent year-on-year and down 21 percent quarter-on-quarter. The cost of revenue per use (CoRPU) went up 5 percent from the year before and 1 percent sequentially to USD 1.03. 

Snap reduced its net loss for the quarter to USD 385.78 million from a loss the year earlier of over USD 2.2 billion. The adjusted EBITDA loss however widened somewhat to USD 217.86 million from a loss of USD 188.24 million in 2017. 

The number of daily active users advanced 15 percent to USD 191 million, from 166 million the year before. DAUs increased 2 percent quarter-on-quarter from the 187 million recorded in the fourth quarter.  

Snap ended the year with USD 1.8 billion in cash, from 2.0 billion in Q4. The company said it reduced cash burn by 13 percent sequentially to USD 222 million. Capex meanwhile lifted to USD 36.3 million from 18 million the year before and 21.2 million in the previous quarter.

Categories:

Mobile

Companies:

Snap,  Snapchat

Regions:

Global

Tags:

Messaging, Sales figures, Financial figures, IT - applications, Advertising services

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