Snap Inc delivered its quarterly report for the second quarter of the year on Tuesday night Norwegian time. Despite the fact that the company has had an increase in the number of users of 17 percent compared to the same period last year, it once again ended up with a huge deficit.
The company – best known for the popular photo-sharing service Snapchat – had a net profit of $ 325.95 million in the second quarter of the year, compared to $ -255.17 million in the same period last year.
Worse than expected
This corresponds to a loss per share of 0.09 cents, compared with a loss of 0.06 in the second quarter of last year.
It was expected in advance that the company would have a net profit of -130.6 million dollars, according to estimates from Bloomberg.
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The market immediately reacted negatively to the poor result, and the Snap share immediately fell close to nine percent in trading on Wall Street. However, it has recovered somewhat, and is about six percent below the evening’s closing price.
With last year’s fourth quarter as an honorable exception, Snap Inc has lost money since its inception. In the presentation of the quarterly report, the company writes that it will not say anything about the expected result for the next quarter, due to the uncertain situation in the economy.
More users and higher revenue
Revenue for the quarter increased to $ 454.2 million, up from over $ 60 million from the second quarter last year. Geographically, this is mostly driven by revenues from Europe, which increased by 30 percent, from $ 61 million in the second quarter of 2019, to $ 79 million in the second quarter of 2020.
In North America, revenue growth was 18 percent, while in the rest of the world it was two percent.
Admittedly, user growth was greatest outside North America and Europe, where the number of daily users increased from 56 million in 2019, to 77 million this year. (Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other form of use of all or part of the content, can only take place with written permission or as permitted by law. For additional terms look here.
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