Snapchat's parent company, Snap Inc., saw its stock plummet by more than 15% today due to a poor earnings report in the first quarter. The company has been struggling financially recently, and losing a sixth of its value in a single afternoon will surely not help.
Snapchat made $ 1.21 per user on its platform this quarter, down substantially from the $ 1.53 it had made in the previous quarter. Although they have earned four million global users, their total revenues have grown from $ 286 million to $ 231 million over the same period. Chief Financial Officer Drew Vollero is also expecting another substantial drop in the second quarter.
This slow growth is due, at least in part, to the extremely poorly-received redesign of the user interface of the application. In order to help users better manage their content, Snap eventually alienated many of its loyal users. This has resulted in the departure of many users as well as a petition with over a million signatures asking the company to cancel the changes.
If we look more closely, these figures are still far from the $ 150 million a quarter they made a year ago. Their stock also grew by 25% last year, but the company lost spectacles Spectacles, but last week Snap released an updated model to try again.
In the future, the Snapchat team focuses on optimizing the Android version of the application that remains unpolished with serious performance issues. The company also plans to streamline the advertising experience for users and advertisers.
[ad_2]
Source link