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Snap Inc. Third Quarter 2017 Results

investor.snap.com

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Re: Snap Inc. Third Quarter 2017 Results

#11

Post by FreakyT »

giarc wrote: post #8
sjg007 wrote: post #4

Earlier quoted context omitted.

The kids still snapchat so... me thinks a while.

What kids? Kids with credit cards or kids where most purchases are made by parents and therefore hard to link back to ads shown on SnapChat? I'm in my 30's and don't know too many people that use SnapChat... so when people say "young kids use SnapChat" I'm not sure if that means 13-18 year olds or 18-29 year olds or something.

Generally, I've found the SnapChat-using demographic is today's college and high school kids so, I'd say in the 15 to 22-ish range.

Re: Snap Inc. Third Quarter 2017 Results

#12

Post by JonFish85 »

Eridrus wrote: post #10

Am I reading this right: have they lost 3bn in the last 9 months?

The footnote kind of explains this:

"Net loss for the nine months ended September 30, 2017 includes $2.5 billion of stock-based compensation expense, primarily due to the recognition of expense related to RSUs with a performance condition satisfied on the effectiveness of the registration statement for our initial public offering."

I believe the vast majority of that was due to issuing stock to Evan Spiegel for successfully executing the IPO at given metrics.

Re: Snap Inc. Third Quarter 2017 Results

#13

Post by danvoell »

giarc wrote: post #9
elsewhen wrote: post #7

SNAP down 16% in after hours trading (at 4:54pm eastern time): https://finance.google.com/finance?q=NYSE%3ASNAP&ei=bSsCWpmn...

For those wondering, click on the chart and type 'e' to show after hours trading.

Thanks for the tip, did not know you could do that.

Re: Snap Inc. Third Quarter 2017 Results

#15

Post by addicted »

sjg007 wrote: post #4
ProAm wrote: post #3

Oof, that is a staggering quarterly loss, how long will investors be willing to tolerate that when there are competitors active now in that industry, mainly instagram.

The kids still snapchat so... me thinks a while.

This is like that Silicon Valley episode, where the only users are underage who are gonna get you fined per use.

That's basically SNAP's audience. Young kids who you cannot monetize, and obviously cannot build billion dollar companies on.

Maybe once they grow up they will be valuable, but (a) can SNAP wait that long and (b) will those users stick to SNAP once they've grown up?

Re: Snap Inc. Third Quarter 2017 Results

#16

Post by nl »

Eridrus wrote: post #10

Am I reading this right: have they lost 3bn in the last 9 months?

Sort-of, but it's a once-off:

Net loss for the nine months ended September 30, 2017 includes $2.5 billion of stock-based compensation expense, primarily due to the recognition of expense related to RSUs with a performance condition satisfied on the effectiveness of the registration statement for our initial public offering.

Re: Snap Inc. Third Quarter 2017 Results

#17

Post by addicted »

nl wrote: post #16
Eridrus wrote: post #10

Am I reading this right: have they lost 3bn in the last 9 months?

Sort-of, but it's a once-off: Net loss for the nine months ended September 30, 2017 includes $2.5 billion of stock-based compensation expense, primarily due to the recognition of expense related to RSUs with a performance condition satisfied on the effectiveness of the registration statement for our initial public offering.

Still leaves ~600mm in losses. Which is still greater than the ~350mm in losses last year.

The idea that money given to employees as equity is not "real money" is toxic.

Re: Snap Inc. Third Quarter 2017 Results

#18

Post by gkoberger »

sjg007 wrote: post #4
ProAm wrote: post #3

Oof, that is a staggering quarterly loss, how long will investors be willing to tolerate that when there are competitors active now in that industry, mainly instagram.

The kids still snapchat so... me thinks a while.

My data is anecdotal, but Snapchat is hemorrhaging "kids" to Instagram.

Re: Snap Inc. Third Quarter 2017 Results

#19

Post by nl »

The headline figure misses quite a lot:

Daily active users (DAU)(1) – DAUs grew from 153 million in Q3 2016 to 178 million in Q3 2017, an increase of 25.2 million or 17% year-over-year. DAUs increased 4.5 million or 3% quarter-over-quarter, from 173 million in Q2 2017.

That's good growth year-to-year, but not spectacular. Still, they aren't being completely killed by FB/Insta/WhatsApp

Average revenue per user (ARPU)(2) – ARPU was $1.17 in Q3 2017, an increase of 39% over Q3 2016 when ARPU was $0.84. ARPU increased 12% over Q2 2017 when ARPU was $1.05.

That's really, really good news for them.

Hosting costs per DAU – Hosting costs per DAU were $0.68 in Q3 2017, as compared to $0.64 in Q3 2016 and $0.61 in Q2 2017.

That's surprising and should be somewhat disappointing. It makes me curious as to the reasons - I wonder if it was international growth where they didn't have good hosting deals or something?

Re: Snap Inc. Third Quarter 2017 Results

#20

Post by big_youth »

giarc wrote: post #8
sjg007 wrote: post #4

Earlier quoted context omitted.

The kids still snapchat so... me thinks a while.

What kids? Kids with credit cards or kids where most purchases are made by parents and therefore hard to link back to ads shown on SnapChat? I'm in my 30's and don't know too many people that use SnapChat... so when people say "young kids use SnapChat" I'm not sure if that means 13-18 year olds or 18-29 year olds or something.

Completely anecdotal but every time I go to 'youth' events. Music festivals, University Football games, concerts, the gym, these past Halloween parties, all I see are young people with Snapchat constantly running.

I'm 28 and only a few of my friends are heavy users but most people younger than me have accounts. I've met several girls who are weirded out that I don't have a snap.

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