Snap Plunges on First-Quarter Revenue Miss
Snap's sales for the first quarter of 2019 were below analyst projections.
Reuters
Snap's first-quarter earnings report shed light on its revenue and ARPU.
The company's "internal estimate" of second-quarter revenues is $1.04 billion. This represents a 6% decline year-over-year.
Snapshots
Shares dropped by up to 20% on Thursday after-hours as the company announced
first-quarter results
Revenue fell short of analyst expectations.
This is what the company did.
Earnings per share
According to Refinitiv's survey of analysts, the expected loss was 1 cent.
Earnings
Refinitiv estimates $989 million against $1.01 billion.
Global Daily Active Users
StreetAccount: 383 vs 384 million predicted
Average revenue per user:
StreetAccount expects $2.63 vs. $2.58.
The company did not provide an official forecast for the second quarter. However, in a letter sent to shareholders, the company stated that it had made "an internal forecast" of revenue at $1.04 billion. This represents a 6% decline year-over-year. Analysts estimated that the second-quarter projections for sales would be $1.10billion.
Like much larger rivals, including
You can also find out more about the following:
Snap is still operating in a challenging online advertising market where companies are cutting back on their marketing and promotion budgets as the economy continues to be shaky.
Snap, unlike its giant competitors, does not have the global presence to manage the digital advertising sector.
Meta, for example, has seen its sales fall in three consecutive quarters.
reported
A 3% increase in the first quarter of $28,65 billion, thanks to Chinese companies
Spending
Facebook is spending a lot of cash to show advertisements to people all over the world.
Watch
:
Meta Q1's earnings were a tour de force