The company reported a $US2.2 billion loss (compared to its loss of "only" $US515 million for the whole of last year) on revenue of $US149 million. The company's adjusted loss was $10 million higher than analysts had expected while its net loss went from $104.6 million to $2.2 billion due to costs related to the initial public offering (IPO) earlier this year.
Its CEO Evan Spiegel received $750 million stock-based bonus for taking Snap public.
It is also registered an increase of 36 per cent on the 122 million daily users the app had this time past year. That's an increase of 36% over year-ago levels but only a 5% gain from the previous quarter.
"The No. 1 question we receive about Snap is can it sustain its user growth and how big can it be", Ralph Schackart, an analyst with William Blair, wrote in an investor note this month. Snapchat grew just 7 percent in Q3 2016 and 3.2 percent in Q4.
However, revenue for Facebook during its first quarter following its IPO in 2012 was $1.18 billion. Both Instagram and Whatsapp, owned by Facebook, have copied many of Snapchat's features recently and has already surpassed Snapchat in daily users. But in the rest of the world, Snap only added a million daily users, reaching 40 million daily active users. Facebook has also added Geostickers to Instagram, offering location-specific tags in two cities (New York City and Jakarta) that users can paste over images.
Sweden Drops Rape Investigation Against Julian Assange
Assange also lashed out at Sweden for taking seven years to investigate allegations he maintained were baseless. The preliminary investigation against Julian Assange for rape (lesser degree) is to be discontinued.
Some are beginning to question whether Snapchat can continue to survive Facebook's onslaught. Advertisers typically flock towards a slightly older demographic that has the money to spend, and Snapchat's audience isn't that ideal for such a move.
Spiegel focused on highlighting the company's progress on Android development on the earnings call.
When the parent of popular disappearing messaging app Snapchat began trading March 2, online trading broker TD Ameritrade said it gained 6,400 new clients with an average age of 38.
Spiegel, asked if he feared the company would be crushed by Facebook, said he remained committed to a strategy "to deliver value through creativity".
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