Snapchat may be the king of cool when it comes to app our youth prefer to spend their time online, but that may not always be the case. Things change fast and with social networks like Instagram doing their best to steal Snapchat’s magic, Snap’s definitely got their work cut out for them.
With their second quarter as a public company officially in the books, Snap’s stocks fell 16% after falling short of Wall Street expectations. It’s not like they’re doing awful, just not as great as investors hoped. According to Snap, their daily active users are still up, growing to 173 million in Q2 2017 (vs 143 million this same time last year, a 21% jump). Quarter over quarter is where you can see things slowing down, with only 7.3 million new users gained in Q2 from the 166 million in Q1 of this year.
Snap CEO Evan Spiegel pointed out that 4 million of those new users were in the US alone (their biggest ad market), with Snapchat’s Discover partners seeing a 30% jump in viewership. Sales of their camera mounted eye wear — Snapchat Spectacles — fell to $5.4 million, vs $8.3 million in Q1.
So while things appear to be slowing down for Snapchat, they still seem to be doing a fine job of adding users. Exactly how long they can keep this up remains to be seen.