Snapchat earnings for Q3 2018 were released today, and despite a beat on revenue, the company still saw a decline in active users. 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.
In the Snapchat earnings release, the company said that it saw 186 million daily active users during the third quarter of 2018. Making the decline even more notable, Snapchat earnings last quarter reported a decline from 191 million in Q1 2018 to 188 million last quarter.
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.
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:
“The Android community represents a global growth opportunity for us and we are making good progress testing the application in select markets. We look forward to rolling it out when it’s ready,” Spiegel said.
On the bright side, Snapchat did beat revenue expectations, reporting $298 million in revenue, compared to Wall Street expectations of $283. TechCrunch notes, however, that Snapchat’s average revenue per user in developing countries was down 12.5 percent during the quarter:
Worringly, Snapchat’s average revenue per user dropped 12.5 percent in the developing world this quarter. But strong gains in the US and Europe markets grew global ARPU by 14 percent. Snap projects $355 million to $380 million in holiday Q4 revenue, in line with analyst estimates.
Spiegel also noted that Snapchat remains popular among the 13-34 age demographic in the United States, but interest is small among others. In an effort to combat this, he says the company is “trying to get the right mix of content” to appeal to broader and more global audiences.
“While we have incredible reach among our core demographic of 13- to 34-year-olds in the US and Europe, there are billions of people worldwide who do not yet use Snapchat.”
Are you a Snapchat user or have you moved on to other apps such as Instagram? Let us know down in the comments!
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