Snap’s Earnings Report: Losses, But User and Ad Revenue Growth – The Buyer’s Journey 51

All this week we’re focusing on the earnings reports of the platforms we work with the most in our advertising campaigns. That includes Facebook, Instagram, Twitter, Google, Snapchat, Amazon, Spotify, and LinkedIn. We’ll be looking at the numbers and explaining what is most important for your marketing campaign. Today, we’re looking at Snap’s earnings report and we’ve got a breakdown of everything you need to know.

A B C, Easy As One, Two, Three

Here are a couple quick-hit numbers from Snap’s earnings report via CNBC.

  • Loss per share: 10 cents vs. 12 cents forecast by Refinitiv
  • Revenue: $320 million vs. $307 million forecast by Refinitiv
  • Global daily active users (DAUs): 190 million vs. 187.22 million forecast by FactSet
  • ARPU: $1.68 vs. $1.62 forecast by FactSet
  • Snap also saw growth in daily active users, totaling 190 million up from 186 million Q4 2018.
  • Snap’s share price is up more than 100% year to date after a fast start in 2019.

But Do You Invest Your Ad Dollars?

Snapchat is an app whose user base leans younger, somewhere between 12-28 year old. As Josh and I mention in the episode, even at 23 years old, we’re beginning to age out of the app. If your audience lies between 12-28, then it might be a great way to get awareness for your product/service. You should keep in mind, however, that 12-16 year old’s often don’t have the purchasing power adults have. However, this growth of users is a good sign for the company.

eMarketer expects that Snapchat will increase its number of users ages 12-17. Facebook, on the other hand, will lose users in that age range. eMarketer “estimate[s] Snapchat will add 1.2 million new US users in that age group by 2022, while Facebook will lose 2.2 million.”

Only last month Snap unveiled they’d be adding gaming functionality to the app, and allowing other apps to use the Snapchat API. This could greatly increase the user base and the time on app. Their growth from here forward will be vital to watch when determining ad budgets in the future.

Snap CEO Evan Spiegel pointed out that their newly released/updated Android app will also be a great help in growing users. “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,” Spiegel said.

Check out our next episode where we’ll discuss a news article covering the Awareness stage of The Buyer’s Journey.

Tune into more of The Buyer’s Journey by checking out our YouTube and Soundcloud, and take us on the go on the iTunes, TuneIn, Google Play Music, and Stitcher.

Join the Commexis mailing list