Snap Third Quarter Earnings 2021
Snap, the parent company of the world’s most famous camera-based social media app “Snapchat” has announced its earnings report for the third quarter of 2021. And, it's not as impressive as its investors would have expected it to be.
As a result of that, the company’s shares dropped a sharp 20% in a downwards direction.
Even though I’m a big believer in the company Snap, its founder Evan Spiegel, and its future. This earnings report with missed expectations especially in the aspect of revenue is actually both surprising and concerning to me.
Before we get into the reason for this poor performance of revenue in the third quarter. Let me first list the important metrics of Snap’s earnings report.
- Global daily active users: Snap reported a global daily active user count of around 306 million against the investor's expectation of 302 million. I think beating the daily active user's numbers by 4 million is a good thing even though it is not enough for the continued growth.
- Earnings per share: Snap has made earnings per share of 17 cents while comfortably beating the investor's target of only 8 cents for this quarter. Good for them on this one too.
- The average revenue per user: With the average revenue per user of only $3.49 versus the expectation of $3.67. Snap has missed the very crucial part of its quarterly revenue pyramid.
- Revenue: Here comes the big one but in a problematic way. Snap only generated a revenue of $1.07 billion against the investor's expectation of $1.10 billion. Missing this is what has made its stock take such a steep drop in price after the announcement of the earnings report.
One of the primary reasons that Snap has said in response to its terrible miss of earnings report is because of the Ad privacy feature measures that Apple has taken at the start of this year. And, it makes sense to me since the majority of Snapchat users are based out of the iOS platform in comparison to Android.
Before ending this post, about Snap.
I love this company, always have. Ever since 2016 at least. Also, its founder Evan Spiegel is one of the most innovative humans on earth. It's surprising to me that Apple’s privacy measures affected Snap this much. But I’m pretty sure that Mr. Spiegel and Snap would figure a way of out this. Like always they have.
Thank you for reading this, and God Bless Everyone.
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Intro About Myself
Name: Tabbrez
Bio: Genius, Polymath, Entrepreneur, Philosopher.
Website: tabbrez.com
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