Snap revenue disappoints, but users grow

Mariam Cheik-Hussein
By Mariam Cheik-Hussein | 5 February 2020
 
Getty

Snap added more than 30 million users last year, but disappointed the market with its revenue.

The social media company reported a revenue of US$561 million for the final quarter of 2019, up from US$390 million during the same period the year prior.

However, the figures just missed analysts’ expectations, with Snap’s stock dropping 13% after its results were announced.

Total revenue for the social media company was US$1.7 billion for 2019, up by 45% from the year prior.

Daily active user numbers were good news for the video-sharing app, which had been losing users in 2018. It reached 218 million users in the fourth quarter, up from 186 million in 2018.

“In 2019 we saw momentum across the board,” says CEO Evan Spiegel.

“We grew our community by 31 million daily active users, accelerated our revenue growth, and progressed towards profitability by improving full-year adjusted EBITDA by 65% year-over-year.

“The strength in our core business gives us confidence in our long term growth and profitability and we’re excited to build on these results in 2020 and beyond.”

 

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