Snap, maker of the Snapchat app and Spectacles camera-enabled glasses, continues to remain focused on growing its base of advertisers following the launch in the recently ended quarter of a self-service platform for fashion brands, retailers and just about any other prospective advertiser to buy its ad products. The platform is aimed at democratizing the use of Snapchat by advertisers large and small by attempting to make it easier to buy Snap ads as well as track campaign efficacy.
Chief executive officer Evan Spiegel summed it up for analysts on the call when he said, “We made a lot of great progress this quarter,” and added monetization is still in its early days.
Snap chief strategy officer Imran Khan reported more than 75 percent of trade publication Ad Age’s top 100 advertisers used the Snap ad platform during the second quarter and the hope is the self-service platform will continue to expand the number of advertisers using the app.
With more than 90 percent of retail spend still occurring in physical doors, Khan said, the goal for Snap is to make sure it’s proving the efficacy of its advertising to companies.
The company disclosed little in the way of projections or specifics on the development pipeline. Spiegel, when asked during the call to talk about the product pipeline for the rest of the year, remained ambiguous, saying he’s “very excited about that and it’s what we love to do over here. So we’re having a great time.”
Investors didn’t seize on the same optimism, instead focusing on the numbers reported for the recently ended quarter in which Snap missed on revenue and profit expectations.
While revenue surged 153 percent from the year-ago period to $181.67 million, the total fell short of consensus estimates of $186.8 million. The company’s loss widened from $115.9 million a year ago to a $443.1 million loss in the second quarter. Analysts were estimating a loss of $172.3 million.
Snap once again did not provide guidance for the current quarter. Analysts on average expect a third-quarter loss of $160 million on revenue of $273.15 million.
Investors sent shares down nearly 17 percent in after-hours trading Thursday to $11.47 for a market capitalization of $16.12 billion.
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