Snap Halts User Decline and Beats Revenue Expectations
Snap stops its two-quarter streak of losing daily active users and surpasses Wall Street revenue estimates for Q4 2018.
Snap shares positive news in its Q4 2018 earnings report by officially halting its two-quarter streak of declining daily active users. The company reports 186 million DAUs, matching the previous quarter's numbers and exceeding Wall Street's revenue expectations with nearly $390 million, which represents a 36 percent year-over-year increase.
Despite the stable user engagement and growing revenue, Snap still operates at a loss of about $192 million for the quarter. However, CEO Evan Spiegel highlights that the company maintains a relatively flat cost structure while growing full-year revenue by 43 percent, bringing the business substantially closer to achieving long-term profitability.
A major focus for future growth relies on the newly released Android application, which shows promising early test results including 20 percent faster load times on less powerful devices. With an estimated 2 billion Android users not yet on Snapchat, company leaders believe that capturing even a small percentage of this market will significantly expand their user base, particularly in developing regions outside of North America and Europe.