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The 5 Key Things Advertisers Must Know About Snapchat's Q1 Earnings Report
Snapchat’s parent company, Snap Inc., is set to release its Q1 earnings report this week. This will be the first earnings report since Snap’s IPO and will be telling where its future as a company is concerned. Facing stiff competition from Facebook and Instagram, Snap is approaching a pivotal moment for its survival.
In the year prior to its IPO, Snap saw a total revenue of $404.5 million and a $514.6 million net loss. It wasn’t profitable at the time of its IPO and its profitability isn’t likely to change soon. In fact, a senior equity analyst estimates that in Q1 2017, Snap may have pulled in $142 million in revenue and lost $2.2 billion. It’s worth noting, however, that going public can be a costly endeavor and that Facebook and Twitter posted net losses of $157 million and $511 million respectively in the quarter after their IPOs.
We’ll be watching closely to see what Snap’s Q1 earnings report can tell us about what’s next for Snap, but there are a few key factors affecting Snap’s stock prices and business that marketers should pay attention to as we approach the critical report.