CAPE TOWN - Snap Inc released its financial results for the quarter ended June 30, 2018, showing that its redesigned app is not a big hit with its users.
According to the result report, the company's revenue climbed 44 percent year on year at $262 million.
However, the latest financial results revealed that it saw daily active users decline to the tune of three million users.
Cash used in operating activities was $199 million in the second quarter of 2018, compared to cash used in operating activities of $210 million in the second quarter of 2017.
Revenue increased 44% to $262 million in the second quarter of 2018, compared to revenue of $182 million in the second quarter of 2017.
Net loss decreased 20% to $353 million in the second quarter of 2018, compared to a net loss of $443 million in the second quarter of 2017.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) loss decreased 13% to $169 million in the second quarter of 2018, compared to an Adjusted EBITDA loss of $194 million in the second quarter of 2017.
“We are excited by the progress we have been making and are optimistic about the opportunities ahead as we continue to invest in innovation,” said Evan Spiegel, Snap CEO and Co-Founder.
Sales climbed 44 percent from a year earlier to $262.3 million, Snap said on Tuesday in a statement. That exceeded the $249.8 million average analyst estimate.
Recently, billionaire Saudi Prince Alwaleed Bin Talal has acquired a 2.3% stake in Snapchat.
The prince announced in a tweet on Tuesday that he invested $250 million in the company on May 25. He paid about $11 per share.
إستثمرت ٩٥٠ مليون ريال سعودي لاتمام صفقة شراء حصة بنسبة ٢,٣٪ في شركة سناب شاتhttps://t.co/XXOgEvEB2W
I invested $250 Million to acquire 2.3% stake in @Snapchat companyhttps://t.co/bdAMGVw3DI pic.twitter.com/jBIiAfqy7t
His investment comes three years after he met with Snap CEO Evan Spiegel in Riyadh to "explore future investment and business opportunities," according to a statement he released on Tuesday.
"Snapchat is one of the most innovative social media platforms in the world and we believe it has only just begun to scratch the surface of its true potential and we are blessed to be part of it," Alwaleed said.
Alwaleed holds stakes in other tech and social media companies, including Twitter (TWTR), JD.com (JD) and Lyft. He also chairs the Kingdom Holding Company.
The prince's announcement came just as Snap reported second-quarter results that beat analyst expectations.
Future expectations for the third quarter
In its financial report, Snap said that it expects its revenue to be between $265 million and $290 million, growth of between 27% and 39% compared to the third quarter of 2017.
It also expects an adjusted EBITDA loss between $185 million and $160 million, compared to $179 million in the third quarter of 2017.
- BUSINESS REPORT ONLINE