Don’t call it a comeback just yet, but Snap’s broken its losing streak.
For the first time, Snap beat industry and Wall Street expectations for daily user growth and quarterly revenues. For the full year of 2017, Snap earned $824.9 million in revenue. The company continues to lose money, but things are certainly looking brighter for Snap today than yesterday. Here’s what you need to know from Snap’s earnings:
The key numbers:
- 187 million daily users (+8.9 million from previous quarter)
- $285.6 million in quarterly revenue (+$77.6 million)
- $1.53 average revenue per user (+.36 cents)
- $350 million in losses in the fourth quarter
- More than 90 percent of Snap Ads were bought programmatically last quarter
- $100 million in revenue generated for Snapchat content partners in 2017
About that redesign…
During Snap’s third-quarter earnings call this past fall, Spiegel admitted that Snapchat was hard to use, one of the reasons the app hasn’t taken off the way investors and analysts hoped (the other, bigger reason: Facebook). Since announcing a redesign that would separate user posts and messages from media content, Snap has been quiet on when the new changes will launch.
Spiegel said the initial tests on the redesign have been promising. In one of the first test markets, daily users for Snapchat Discover channels grew by 40 percent following the redesign, he said. The full rollout is coming sometime in the first quarter.
According to Spiegel: “Every week, on average, more than half of the entire 13-34-year-old population of the United States plays with augmented reality Lenses in Snapchat.”
More stories everywhere:
After noting how Snap is now making its stories available outside of Snapchat, Spiegel said: “We’ve also started bringing Snaps to bigger screens like stadium jumbotrons at this year’s Rose Bowl and Sugar Bowl. Removing friction from the way people use Snapchat and view Snaps will help us continue to grow our community over the coming year.”