Snapchat parent company Snap's first ever
earnings report as a public company is out and it's not pretty.
The stock is down roughly 20% in
after-hours trading after Snap missed Wall Street revenue expectations and its
user growth fell to the slowest level in years.
Snap's average revenue per quarter was up
nicely year-on-year, but the company's pace of monetization remains well below
that of Facebook, Snapchat's primary competitor.
The ARPU gap shows how much of a
challenge Snapchat faces in its battle against Facebook. Of course, a bullish
Snap investor might view it from a more optimistic perspective, as a sign of
how much room Snap has to grow.
Here's Snap's average revenue per user
for the first quarter:
And here's
Facebook's first quarter ARPU:
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