Snapchat is losing millions of dollars
Snapchat’s parent company, Snap, opened to public in the stock market three months ago. Important information about popular messaging practice with 6 years of history has surfaced with public offering. Snapchat’s daily number of users is 158 million, and the company has announced that it has completed 2016 with $ 400 million income and $ 500 million loss. The first Snapchat financial report released shows that after the public offering, the future for the company is getting darker.
The company closed the first quarter of the year with a huge loss of $ 2.2 billion. The main factor in the emergence of this figure was the payments made due to the public offering. The main danger for Snapchat is that it stands at 5 percent of the daily growth rate of active users. The number of active users per day reached 166 million in the first quarter. The revenue of the company increased by 286 percent compared to the first three months of the year and reached 149.6 million dollars.
Speaking at a briefing on the results, Snap CEO Evan Spiegel highlighted changes to the Snapchat Android application. Spiegel said that with these changes, they gain 30 percent more users. The number of daily snapshots surpassed 3 billion, the CEO said, which was 2.5 billion units in the previous quarter. The daily practice time of the users is 30 minutes. Both CEO Spiegel and the company’s chief strategy officer, Imran Khan, stressed that the investment in new features and original content will give Snapchat a competitive edge.