Snapchat Rollout Overhaul Android App Project Mushroom

Joanna Estrada
April 26, 2019

Snap, the owner of the photo-messaging app Snapchat, revealed last night that it had added users for the first time in three quarters as it also reported lower losses than the market had been expecting.

Ahead of the earnings report, eMarketer suggested the company may report its first ever decline in U.S. monthly users in the first quarter.

Executives left the company in droves late previous year after a widely panned redesign of Snapchat, and any uptick is a welcome sign Snap has stemmed user losses. The app gave me a good first impression, and two weeks after that release, things are beginning to fall into places for the Snap.

A renewed focus on original content with 50 new shows launched throughout the quarter provided Snap with a much-needed boost to keep it riding high, after a similar upbeat surprise for analysts in February. After initially surging almost 10 per cent in late trading on Wall Street Snap...

The company also rebuilt part of its app for Android users, which had been plagued by bugs and received little attention from the firm in the past.

Snap also delivered better than expected financial results, with $320 million in revenue, up 39 percent from the same time past year.

Snap is a free application that relies on advertisers to survive. Snap made $320 million revenue and -$0.10 non-GAAP EPS in Q1 this year.

Snapchat revenue jumped 40 percent within a quarter in comparison with the previous year.

Net losses at the company were reduced by $75m from past year to $310m.

Excluding items, the company lost 10 cents per share in the quarter, beating analyst estimates of losses of 12 cents per share.

Following a strong fourth-quarter earnings report in February, Snap has seen its fortunes improve, dispelling much of the gloom that has hung over the company from late-2017 though all of 2018. Guggenheim analyst Michael Morris estimated Snap will add 188 million DAUs.

Earlier this month, Snap launched a gaming platform within its Snapchat app featuring original and third-party games such as Zynga Inc's Tiny Royale.

Spiegel said during the earnings call on Tuesday that Snap Games could eventually help the company make more money from the communication side of the app, as users play games with their friends.

Other reports by Click Lancashire

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