New Delhi: It wasn’t the day Snap Inc — the parent company of Snapchat — had planned. In its first quarterly earning report after going public in March, the company saw growth slipping to its lowest in the past two years, reporting 166 million users at a growth rate of a mere 5 per cent.
Snap’s year-over-year growth rate fell to 36 percent year-over-year from 48 percent in the fourth quarter last year, TechCrunch reported on Thursday. After the results, Snap shares fell immediately, trading nearly $18.19 which is the lowest since it went public. The co-founders Evan Spiegel and Bobby Murphy each lost more than $1 billion.
Snap added just three million new users in north America to hit 71 million daily active users (DAU). The company added three million in Europe to hit 55 million DAUs. In the “Rest of World” region, it added just one million users to reach 40 million DAUs. Its nearest competitor Facebook-owned Instagram currently has 700 million users, with its
“Stories” feature having 200 million daily active users. “Snap is emerging as the new stubborn, slow-growing Twitter amidst similar Facebook competition and reluctance to filter its feed that Twitter exhibited four years ago,” the report added. On its first earnings call, CEO Spiegel focused on highlighting the company’s progress in Android development.