The amount of money that Snap makes on each user is slowing waaay down.
Snap Inc.’s user numbers were not as bad as expected in Tuesday’s earnings report, but the Snapchat parent company is suddenly struggling in the one area in which it must succeed.
But that changed in the first quarter, as ARPU growth hit record lows outside North America. In Europe, Snap reported collecting 77 cents per user, up 47% from last year, and it was 97 cents in the rest of the world, up 68%. It is the first time that ARPU growth in the rest of the world has fallen below triple-digit percentage gains, and the growth rate in Europe fell from 57% last quarter and 120% a year ago.
“There are billions of Android devices in the world that now have access to an improved Snapchat experience and we look forward to being able to grow our Snapchat community in new markets,” co-founder and Chief Executive Evan Spiegel said on Tuesday’s call, adding later that the company was excited with what it was seeing from the Android rollout.
Ever since its IPO, Snap has been clouded by the view on Wall Street that the biggest growth in its user base was over, and that it went public after growth had peaked. The company must now monetize its users better, especially overseas, to get the kind of growth Wall Street is looking for, and its improved Android app and overcoming lags for the transition to self-serve ads are key to that potential.
इंडिया ताज़ा खबर, इंडिया मुख्य बातें
Similar News:आप इससे मिलती-जुलती खबरें भी पढ़ सकते हैं जिन्हें हमने अन्य समाचार स्रोतों से एकत्र किया है।
Snap restarts user growth with original shows, Android overhaulSnap Inc's original shows and rebuilt Android app helped it add Snapchat us...
और पढो »
LIVE: Snap beat Wall Street's expectations for Q1 2019, and its stock is soaringSnapchat parent company Snap announced its Q1 2019 earnings after markets closed on Tuesday.
और पढो »
Snap returns to user growth on new shows, Android app; shares jumpSnap Inc on Tuesday beat Wall Street targets for quarterly revenue as its photo-...
और पढो »
Snap's 110% moonshot this year still isn't enough to get Wall Street rooting for itSnapchat parent company Snap is scheduled to report first-quarter earnings after the bell on Tuesday.
और पढो »
LIVE: Here comes Snap's Q1 2019 earnings...Snapchat parent company Snap announces its Q1 2019 earnings after markets close on Tuesday.
और पढो »
LIVE: Snap stock jumps after beating expectations on revenueSnapchat parent company Snap announces its Q1 2019 earnings after markets close on Tuesday.
और पढो »
Explainer: How 5G drove moves by Apple, Qualcomm and IntelApple Inc and Qualcomm Inc on Tuesday settled an acrimonious two-year legal disp...
और पढो »
Pinterest Inc.Pinterest Inc. stock price, stock quotes and financial overviews from MarketWatch.
और पढो »
Texas Instruments Inc.Texas Instruments Inc. stock price, stock quotes and financial overviews from MarketWatch.
और पढो »
Here are the biggest analyst calls of the day: Morgan Stanley, J.M. Smucker, Snap, Yelp & moreHere are the biggest calls on Wall Street on Thursday
और पढो »
Snap has three years to make a profit before it runs out of moneySnap has to raise user numbers and cut costs while fighting off Facebook’s plan to neutralize all and any competition. The pressure is on.
और पढो »