Re:Snap Inc. Third Quarter 2017 Results
by panabee on Tuesday November 07, 2017 @05:53PM
(#15648466)
thanks for digging into the details and analyzing results in a balanced way!
if DAUs increased, perhaps the average user also used snapchat more often, which would increase costs. this is pure speculation, of course, so please share if you discover the cause.
either way, hosting costs per DAU is an incomplete metric -- something like cost per minute (i.e., minutes in app or otherwise interacting with snap) would be a helpful supplement.
Re:Snap Inc. Third Quarter 2017 Results
by throwayit on Tuesday November 07, 2017 @08:09PM
(#15649230)
3% quarter over quarter growth on a product that is supposed to be still in growth mode is pretty bad. Compare this growth rate to Facebook's when it was was a 200 million DAU and it is not much at all.
Add in their enterprise value to revenue ratio and its a very sad story.
3% quarter over quarter growth on a product that is supposed to be still in growth mode is pretty bad. Compare this growth rate to Facebook's when it was was a 200 million DAU and it is not much at all.
Yes this is very true.
They have to find a new growth channel somehow. It's good news that their user base isn't being eroded by competition, but they need to try something different to grow.
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?