Snapchat announced their Quarter 3 earnings this past Thursday and its performance was less than stellar. The company’s daily active user count dropped from 188 million to 186 million. Additionally, Snap’s share price sank to $6.31 in after hours trading.
However, Snap did beat Wall Street’s expectations on its numbers. The company earned $298 million in revenue for Q3 and had an earnings per share loss of $0.12. This was better than Wall Street’s expectations of $283 million in revenue with an EPS loss of $0.14.
In an effort to explain the drop in users, Snap’s CEO Evan Spiegel explained that the 2M user loss was mostly due to Android users. This is from the fact that Snapchat runs much better on iOS than it does on Android.
Snapchat has been going towards the augmented reality gaming route with its launch of Snappables back in April. The games allow users to use touch, motion, and facial expressions to play single and multiplayer games. Given that Instagram has been able to clone Snap’s stories, perhaps gaming is the way to go.
In the meantime, we will have to keep on watching Snap to see if it comes up with any other new ways to become profitable.