Snapchat got its groove back, but Wall Street focused on a single negative stat
Describe your earnings in 5 words or less... More good stats, less bad. Snap is officially enjoying its 3rd straight quarter of strong numbers that haven't disappeared yet.
- Users: The number of humans snapping daily hit a record 210M, up 13% from last year.
- Revenue: Between your roommate's rando snap and buddy's tailgate story was an ad from State Farm. Revenues like that rose to $446M last quarter, up 50%.
- The net loss: Snap's still asking investors and lenders for money because it loses cash every quarter. But its loss shrank to just $227M, less than the $325M lost the same period last year.
What about ARPU, man?... Silicon Beach-based Snap is at the mercy of that stodgy abbrev each quarter: ARPU (Average Revenue Per User). It made $2.12 off every Snapper on average last quarter, the slowest growth in ARPU since 2017. Shareholders thought it was still mid-growth spurt, so the stock dropped 4% on the early sign that puberty is almost over.
The goal: Be like Twitter... Snap and Twitter are Facebook's only real social media competitors (besides TikTok, which our nephews haven't explained to us yet). And their similar userbases are both a fraction of Facebook's 1.6B who log in daily. Twitter already found sustained profitability, a passionate userbase, and a stock that doubled in the last 2 years. Snap wants in.