They found out in the company’s first quarterly earnings report Wednesday that Snap not only succumbed to the usual dip, but also that its $150 million in revenue represented a harder blow than those suffered by more established ad sellers. Ad sales often fall off early in the year across the media landscape, but many investors predicted Snap as a young company would be immune from the trend. Such messaging didn’t appear to ease doubts.Īnother reason for concern is Snap’s ad revenue performance. Ahead of reporting its earnings, the company cautioned that it wasn’t likely to pick up new users at the exceptional pace of the past and that growth would be “lumpy,” with quarterly variances depending on when new features are launched. Snap, for its part, has said its success should be measured in revenue per user - ad income divided by the number of users - instead of user growth. The amount of time Snap has to straighten its course may depend on whether it can satisfy one of Wall Street’s favorite measurements for success: user growth. So what does Snap learn from this initial debut? What lessons does it take with it?” ![]() “It’s really about how the company will respond going forward - Facebook came out of it and increased its market cap fourfold Twitter has not. “It’s a tale of two cities,” said Goodwater Capital managing partner Eric Kim. ![]() The microblogging service suffered a similar sell-off following its first earnings report its shares currently trade at half their value when Twitter went public. The risk for Snap is that it could end up more like Twitter Inc.
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