It’s not too unusual for the first quarterly earnings report for a newly public tech company to be a disaster. In 2012 Facebook’s stock tumbled as investors wondered whether the company would be able to transition its business to mobile. Twitter’s stock crashed when investors realized, thanks to its anemic user growth, that it wasn’t the next Facebook. Now Snap is going through the same hazing, with its stock tumbling more than 20 percent after investors realized that Cool Teens alone cannot sustain a multibillion-dollar corporation.
But Snap’s poor performance is an outlier in a quarter that was great for Wall Street overall, including the major tech firms. Apple crossed an eye-popping new milestone, Tesla now leads its competitors by one key metric, and even down-on-its-luck Twitter somehow got some good news for once. Welcome to earnings season.
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Handwritten Revisited will include 16 songs in all, including four new songs andfive live recordings from the the 17-year-old pop star’s Aug. 16 show at the GreekTheater in Los Angeles.
Presently it swung full upon us and—stopped. The tension on our nerves was near the breaking point, and I doubt if any of us breathed for the few moments he held us covered by his glass; and then he lowered it and we could see him shout a command to the warriors who had passed from our sight behind the ridge. He did not wait for them to join him, however, instead he wheeled his thoat and came tearing madly in our direction..
But now the sounds inside had ceased, and a thin circle of bright metal showed between the top and the body of the cylinder. Air was either entering or escaping at the rim with a thin, sizzling sound. They listened, rapped on the scaly burnt metal with a stick, and, meeting with no response, they both concluded the man or men inside must be insensible or dead. Of course the two were quite unable to do anything.
“TRULY UNDERSTANDING ONE’S ENVIRONMENT REQUIRES ONE TO FIRST UNDERSTAND ENGLISH”
Snap’s first earnings report raised plenty of red flags for investors who will not be satisfied until they hit upon the next social networking giant. Revenue, at $150 million, was less than the $158 million analysts expected, indicating Snapchat’s ad machine isn’t growing as fast as expected. User growth also stalled below expectations, reaching 166 million. Snap added more users in Q1 than in Q4 2016, proving that Facebook’s copycat antics haven’t fully hobbled it. But the company’s growth rate is down compared to a year ago, which is a bad sign for a firm that still wants to market itself as a startup. (The company’s chief financial officer tried to save face by telling analysts the company is “still in investment mode.”)
There were some promising tidbits hidden below the high-level negative numbers. Snapchat users spend 30 minutes per day in the app on average, 21 million people watched the company’s Oscars story, and 8 million people have viewed the company’s original shows. The app clearly has a highly engaged audience. But investors tend to decide very quickly which stats they will glom on to so they can determine a company’s potential, and for Snap, unfortunately, that appears to be figures (like daily active users) that are most easily comparable to Facebook. CEO Evan Spiegel finds himself in the unfortunate situation of Facebook stealing all his ideas in order to make Snapchat seem superfluous, while investors are dinging Snap for not growing as fast as the company that is stealing all its ideas. It may be a long 2017.