Snap’s losing streak continued with today’s Q3 2017 earnings report that saw it miss financial expectations and add just 4.5 million users. Snap earned $207.9 million in revenue with a loss of $0.14 per share, compared to expectations of a $237 million in revenue and a loss of $0.15 EPS. The 178 million total daily users equates to a 2.9% quarter-over-quarter user growth rate, it’s lowest ever, and much slower than the 4.2% in Q2 and 5% in Q1. Analysts had expected 180 million users.
Snap’s share price closed at $15.12 today before earnings were announced. The share price fell over 17% when the awful earnings were announced, bringing the share price down to hover around $12.41.
Snap lost a staggering $443 million this quarter as it struggles to improve its efficiency while growing its advertising base.
Snap has had a tough few months. It experienced layoffs in its Spectacles hardware team and cut 18 from its recruiting division, Business Insider reported. The company apparently has hundreds of thousands of pairs of its camera glasses sitting unsold in warehouses says The Information, and the majority of owners didn’t keep using them after a month. A bungled launch led details of Snapchat’s new augmented reality art platform to leak before its big reveal.
Meanwhile, competition from Facebook has only increased. It’s pouring more resources into building out the Facebook Camera platform that copies Snap’s camera. And both Instagram Stories and WhatsApp Status now have 300 million daily users — far more than Snap’s whole app that pioneered Stories.
Snap will have to hope its more differentiated products like Snap Map location sharing and search, and its premium mobile video Shows can draw in more users or at least more time per user as the rest of its app gets cloned.