According to the latest numbers and despite a strong second quarter, Snapchat’s monthly users have dropped to 188 million.
Story war, not so civil
The onslaught of Facebook’s clones from Snapchat innovations has taken its toll, as Snapchat’s daily user numbers have shrunk 1.5% despite its boost in revenue.
Beating earnings expectations at a reduced loss of $0.14 when Wall Street had predicted an EPS loss of $0.17, they will have some extra cash but less users to spend it on, for the moment.
That extra cash was invested by Saudi Prince Al-Waleed Talal for 2.3% of company stakes. The company’s ability to lift revenue as much as 44% year-over-year hasn’t hurt the wallet either.
Dusting off Q1
This year's first quarter has gone down in infamy at Snapchat with its slowest-ever user growth which cascaded into a 24% drop in shares last May.
However it's not all doom and gloom. DAUs are engaging with the app as much as ever, remaining relevant for the hallowed youth demographic and growing 8% among users above 35, which is big news.
Snapchat’s popularity with older demographics has always had issue finding purchase, and a sudden surge into larger untapped markets could be the turnaround Snapchat needs. Could parents be about to join the youngins?
Are you surprised to hear about the Snapchat numbers? Are you in the above 35 demographic? What are your thoughts? Let us know in the comments below.