Q2 2017 disappointed
Snap (SNAP), set to report its second-quarter results on August 7, is expected to report EPS of -$0.17 on revenue of $252.6 million. The company generally has a mixed earnings track record. In its previous second-quarter report, for instance, it missed both EPS and revenue expectations.
In the second quarter of 2017, Snap reported EPS of -$0.16 on revenue of $181.7 million, while the market was expecting EPS of -$0.15 on revenue of $186.2 million. Its subscriber growth also missed analysts’ target. While Wall Street was expecting the company to exit the quarter with 175.2 million DAUs (daily active users), it exited the quarter with 173 million DAUs. The company finished the first quarter with 191 million global DAUs.
Snap has had time to make improvements
However, a lot has changed or improved at Snap over the last year. The company simplified its Snapchat app, and there is still room to improve. Microsoft (MSFT), Google (GOOGL), Facebook (FB), and Twitter (TWTR) have crafted lightweight versions of their popular apps to stimulate usage in developing markets, and this option is still available to Snap.
Besides redesigning the app, Snap is also going for more business overseas, recently striking a deal to help it reach more advertisers in India, whose digital advertising market is expected to double between 2017 and 2022.