Despite A Growth In Users, Snap Reports A $2.2 Billion Loss In Q1

Snap

It’s been a rough ride for Snap Inc., the parent company of Snapchat. The company went public in March at $17 a share and has slowly increased, closing at $22.98 today. Despite growth in users, Snap reported a $2.2 billion loss in its Q1 earnings report. The loss goes to show that Snapchat has a long battle to fight in a crowded social media industry, especially against Twitter and Facebook. 

The introduction of Snap’s new advertising platform deepened its losses, which was worse than analysts projections. The substantial loss can also be attributed to the $2 billion one-time hit in IPO-related compensation expenses. But despite the extensive loss, Snap continues to leverage what other social media platforms such as Facebook and Twitter don’t have: core users of teens and young adults. Their audience is ideal and valuable to marketers who so desperately want to reach this demographic. Read more about Snap’s Q1 report & let us know what you think!

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