The titles of Snap posted 6% losses on Wall Street after presenting their second quarter results. The company has announced losses of $ 326 million, almost 28% more than the 255 million registered in the same period of the previous year, which has caused sales. Not even with him increase in income and users The social network has managed to gain the trust of the market.
The company has entered between April and June 454.2 million dollars, more than in the second quarter of the previous year (439.1 million), and daily active users worldwide have been 238 million, 17% more than the 203 of the same period of 2019. But they have weighed more the losses of 9 cents per share reported by Snap.
And is that the growth rate of income has been much lower than that registered in the first quarter. Something Snap CEO Evan Spiegel explained in an investor conference call as follows: Revenue growth rate "continues to be impacted by continued market disruptions" caused by the coronavirus pandemic .
Snap has blamed the biggest losses on its strategy of "building on the momentum we've established with our community, and our advertising partners," as well as higher interest expenses related to convertible bonds, and also the one-time earnings it reported. the sale of Placed, a location-based user data provider, in the same quarter last year.
The company has explained that so far, so far in the third quarter, revenue has increased 32% compared to the previous year, but expects growth to moderate during the rest of the quarter, ending with growth of around 20%, CNBC.
"The demand for advertising in the third quarter has historically been bolstered by factors that seem unlikely to materialize in the same way as in previous years, including back to school, movie release times, and the operations of various sports leagues." Snap's chief financial officer Derek Andersen said. "At this time it is difficult to predict how these factors may impact advertising demand in the rest of the third quarter," he concluded.
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