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Snap projects $355 million to $380 million in holiday Q4 revenue, in line with analyst estimates. But strong gains in the US and Europe markets grew global ARPU by 14 percent. Worringly, Snapchat’s average revenue per user dropped 12.5 percent in the developing world this quarter. TechCrunch notes, however, that Snapchat’s average revenue per user in developing countries was down 12.5 percent during the quarter: On the bright side, Snapchat did beat revenue expectations, reporting $298 million in revenue, compared to Wall Street expectations of $283. We look forward to rolling it out when it’s ready,” Spiegel said.
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“The Android community represents a global growth opportunity for us and we are making good progress testing the application in select markets. While last quarter Snap attributed the decline in user growth to its controversial redesign, CEO Evan Spiegel this time made mention of Android users as the reason: This means that over the last two quarters, Snapchat has lost some 5 million daily active users – a statistic that does not bode well for the company when it’s trying to court additional advertisers.
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Making the decline even more notable, Snapchat earnings last quarter reported a decline from 191 million in Q1 2018 to 188 million last quarter. In the Snapchat earnings release, the company said that it saw 186 million daily active users during the third quarter of 2018. This marks the second quarter in a row during which Snapchat has experienced a decline in users, and it’s a trend the company expects to continue. Snapchat earnings for Q3 2018 were released today, and despite a beat on revenue, the company still saw a decline in active users.