Snap-In Ink. stocks fell on Tuesday after the close of trading, after the company’s weak first-quarter earnings and warning that, most likely, growth will not be much better in the near future.
According to first quarter earnings of the company published today, the company in the first three months of the year amounted to 230 million—up $54 percent year-on-year, but still missing analysts ‘ expectations of $245 million. And while overall daily active users and added 4 million for a total amount of 191 million is still 7 million less than expected wall Street. Meanwhile, the average revenue per user increased by 34% year-over-year to $1.21 per user, and by 21 percent compared to the previous quarter.
The company blamed its lackluster quarter on Seasonality and its recent redesign which has been widely criticized by its core demographic of teenagers and young people. Changes, in particular, provides for the separation of user Content from Content created by media companies, expanding the Dating section and posting frequent contacts at the highest and not the last.
The results come only a week after the company introduced its second-generation snapchat bespectacled, camera-equipped glasses.
In prepared remarks on a call with investors, the on button. CEO Evan Spiegel said the new design “is due to our fundamental belief that separate friends from professional Content creators, it is important to both our mission and long-term growth of our business.” He said the changes make it easier to find the content, and also eliminates the need to compete with professional makers for attention. This approach allows snap “to take great risks and endure the accompanying volatility.”
“In this case, it is our long-held belief that the division of the social interactions of media content encourages people to create and share pictures with each other and create greater opportunities and incentives for media partners,” said Spiegel. “Then we build and optimize our products around these core values, priorities their growth in the short term.”
The company said it continues to experience weak performance for Android users who have been affected by some changes in design. However, Spiegel said the company is working on updates that will probably be released in the third quarter of this year. Meanwhile, building on existing features such as discovery and other, which are added to the existing app that can help in the short term.
The company also released a number of statistics related to the use of:
- About 60 percent of daily active users now to use the camera function to take a snapshot.
- 81 million people watched the broadcast of the Winter Olympics through to find in nine different languages.
- In the US, 10 million people tuned in each day of the Olympic games.
- Custom pictures appeared on jumbotrons in 67 games during the ncaa championship basketball.
- More than 200 organizations and mass media were presented pictures or inner tooling platform on the map coverage on all channels.
- More than 200 lenses augmented reality, created in the last quarter, which has been viewed over 1 million times in the last few months.