Chart: Snap's Trajectory Looks More Like Twitter Than Facebook
What You Need To Know
Snap's total revenue in the fourth quarter of $285.7 million not only rose 72 percent but "easily" exceeded Wall Street's expectations of $252.8 million. Revenue per user rose from $1.05 in the fourth quarter of 2016 to $1.53 in the most recent quarter.
Why It's Important
One of the biggest concerns surrounding Snap's business heading into the earnings report was user growth, according to Statista. In Q4, the company showed that user growth re-accelerated, albeit "ever so slightly," Statista's Felix Richter said. While user growth is certainly "good news," Snap's growth rates are not in the same league as Facebook Inc (NASDAQ: FB)'s growth — it's more akin to Twitter Inc (NYSE: TWTR), Richter said.
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It is "hard to imagine" how Snap's user growth can compete with rivals, including Facebook-owned Instagram, which boats more than 500 million daily active users, Richter said.
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