Snap plans app relaunch as growth slows, losses widen in Q3

Wednesday 8 November 2017 | 08:39 CET | News

Snap, the maker of the Snapchat app, saw its losses grow and revenue and user growth slow in the third quarter. The company reported a net loss of USD 443 million, more than triple the loss of USD 124 million a year ago. Revenues rose 62 percent to USD 208 million, after more than doubling year-on-year in the previous quarter.

Snap said it had 178 million daily active users in the quarter, up 17 percent from a year ago and 3 percent more than in Q2. ARPU increased 39 percent year-on-year and 12 percent on a quarterly basis to USD 1.17. 

Snap's cash position fell to USD 2.3 billion from USD 2.8 billion in the previous quarter, after negative free cash flow of USD 220 million. 

The company also took a charge of USD 40 million in the quarter for excess inventory of its Spectacles. While it sold less than expected of the devices, Spectacles will remain in the product offer and should contribute "modest revenue" going forward, Snap said. 

CEO Evan Spiegel admitted that users were growing "at a rate lower than we would have like" and said he expects this to improve in 2018. The company will be launching a new version of its Android app, starting in select markets, in an attempt to drive growth through an easier to use interface for Snapchat. 

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