Snap Inc. announced its first quarter 2023 financial results. Revenues were $989 million versus $1.01 billion estimated, down 7%. The Snapchat company has a net loss of $329 million, up from $360 million year over year. Stock market crash.
It seems that they have underestimated the impact of Apple’s ATT which is now damaging them, contrary to Facebook which was able to equip itself in time for the purpose and presented good results in this first quarter of the year.
Overall, daily users are growing 15% year over year, but it hasn’t grown in the US for three consecutive quarters. And even in Europe, the growth in the number of users is minimal. So, as the infographic shows, growth is happening in the rest of the world.
In the USA and Europe, Snap collects 80.6% of revenues. Therefore the rest of the world accounts for less than a fifth of total revenues. Furthermore, for a general ARPU (“Average Revenue Per User”) of $2.58, this is $6.37 in the United States, $1.70 in Europe, and $1.70 in the rest of the world. on the other hand, it amounts to only one dollar.In short, the number of users grows where it yields less.
Last week, Snap launched its OpenAI-powered chatbot, My AI, which allows Snapchat users to chat with the bot individually or with a group. The company said users were sending more than 2 million messages a day to the bot, but that could just be the initial novelty factor unless the product gets better. Snapchat later saw a spike in one-star reviews as users badmouthed the chatbot and called for its removal. So also from this point of view it is anything but a success
Basically Snapchat is growing but not convincing, and the prospects for the next quarter are far from rosy.
Social media accounts for nearly 10 percent of online shopping traffic
by Pierluca Santoro
