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Old 06-04-2018, 02:43 PM
#201
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$12.315 : +$0.685 (+5.89%)

Big volume in the weekly $12 and $12.50 calls.

Recovered some of my losses on my Jun 15 $14 calls. Will have to roll them out to July

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Old 08-07-2018, 12:30 PM
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Q2 2018 Analyst esitmates
GAAP loss of $0.31 per share, non-GAAP loss of $0.17 per share . . . had non-GAAP loss of $0.16 per share a year ago
Revenue of $250 million . . . revenue was $181.671 million a year ago

DAUs: ??? . . . had 173 million a year ago and 191 million in Q1 2018
Average revenue per user (ARPU): ??? . . . was $1.21 in Q1 2018 and $1.05 in Q2 2017

Hosting costs per DAU: ??? . . . was $0.61 in Q2 2017
Capital expenditures: ??? . . . was $19.4 million in Q2 2017


https://marketwatch.com/story/sn...hat-2018-08-06

Snap earnings: After Facebook and Twitter disaster, whither Snapchat?

Snap’s sales and user growth expected to take a hit, the same issues that led to big post-earnings declines from larger rivals

Aug 7, 2018

The self-described camera company has stated that second-quarter revenue, which it is set to report after the closing bell on Tuesday, will see year-over-year growth slow down “significantly” from the first quarter’s 54%. Snap’s user growth could also take a hit from the implementation of Europe’s General Data Protection Regulation, or GDPR, the same types of issues that led to big declines for Facebook and Twitter after those companies issued earnings last month.

Barclays analyst Ross Sandler wrote in a note to clients earlier this month that his team models Snap’s “significant” decline as a drop of larger than 18% in revenue growth, which would place second-quarter revenue at $241 million, a 33% gain compared with the year-earlier period. Sandler has the equivalent of a buy on Snap stock with a $16 price target.

Snap, however, has not dealt with the same level of scrutiny from critics and lawmakers as its social-media rivals, which have faced withering criticism for foreign powers interfering in U.S. national elections, the spread of misinformation and troubling results of such activity, and data-privacy issues brought into the public debate once again by the Cambridge Analytica scandal. That doesn’t mean it’s immune to the ultimate effects: declining revenue growth with little certainty of a reversal in the back half of the year.

GDPR, which pushed Facebook’s user counts down compared with the first quarter, will also likely impact Snap, according to Nomura analyst Mark Kelley. Because of the new regulations it’s possible that the playing field will be leveled in terms of Snap’s ad-targeting capabilities, which were unable to match rival Facebook’s ability to target users. Kelley has a hold on the name with a $13 price target.

Earnings: On average, analysts polled by FactSet expect second-quarter losses of 31 cents a share and adjusted losses of 17 cents a share. Contributors to Estimize, which crowdsources estimates from analysts, fund managers and academics, predict adjusted losses of 17 cents a share, on average.

Sales: Analysts on average project Snap second-quarter revenue of $250 million, up from $182 million in the year-ago quarter. Contributors to Estimize forecast revenue of $251.9 million.

Everything else: Product-wise, the most important change has been the redesigned Snapchat app, which started to roll out during the quarter — celebrities and less high-profile users have expressed frustration with the new approach. The company has said it plans to improve its app for Alphabet Inc.’s Android mobile operating system, which has also been savaged by users for its relative poor implementation compared with the Apple Inc. iOS version.

Also during the quarter Snap launched the second version of its Spectacles product, sunglasses that let people take photos and video and use them within the Snapchat app, the only move by Snap that seems to live up to its claims in Securities and Exchange Commission filings that it is a camera company. The first version was not the success the company had hoped, costing it millions in research and development costs and ultimately not selling nearly as well as expected. Version two launched with decidedly mixed reviews, and it’s likely executives will give investors an update on the new hardware’s progress.

One bright spot for investors should be the fact that the company’s shift to programmatic — or self-serve — ads is nearly complete. Before the use of automated tools for ad purchasing, the company would have had to rely on a cumbersome, essentially manual process of initiating an ad-buying order. Such a system is not scalable for a public company.

The downside of moving to programmatic buying is sliding ad inventory prices, but in the long run it lets Snap capture the long tail of small and midsize businesses, which have powered success for Facebook and Alphabet’s Google.

Last edited by AZuser; 08-07-2018 at 12:34 PM.
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Old 08-07-2018, 01:17 PM
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Geez that volume on the $11 8/10 put option
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Old 08-07-2018, 03:11 PM
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After hours 13.69 +0.57 (4.34%)


loss of 14 cents per share, vs. expected loss of 17 cents a share
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Old 08-07-2018, 03:14 PM
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Doing the opposite of FB and TWTR

$14.51 : +$1.41 (+10.76%)
After hours: 4:12PM EDT

https://investor.snap.com/news-relea...2018-211104059

Loss of $0.14 per share vs estimates for loss of $0.17 per share -- beat
Revenue up 44% to $262 million vs estimates for $250 million -- beat

DAUs: Up 8% to 188 million vs 173 million a year ago but down 2% from 191 million in Q1 2018
Average revenue per user (ARPU): increased 34% to $1.40 from $1.05 a year ago

Free Cash Flow was $(234) million in Q2 2018, compared to $(229) million in Q2 2017.

Net loss decreased 20% to $(353) million in Q2 2018, compared to a net loss of $(443) million in Q2 2017.


Q3 2018 Outlook

Revenue is expected to be between $265 million and $290 million, growth of between 27% and 39% compared to Q3 2017.
Adjusted EBITDA loss is expected to be between $(185) million and $(160) million, compared to $(179) million in Q3 2017.

.

Last edited by AZuser; 08-07-2018 at 03:23 PM.
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Old 08-07-2018, 03:35 PM
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Old 08-07-2018, 04:21 PM
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Giving up its gains

12.77 -0.35 (-2.67%)
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Old 08-07-2018, 05:13 PM
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Originally Posted by Mizouse View Post
Giving up its gains

12.77 -0.35 (-2.67%)
Probably because it's the 1st time it saw a decline in DAUs. Analysts expected 192 million DAUs, not a decline. People must really hate the app redesign.

I guess thinking is that Facebook (Instagram) is stealing away users since they're copying every Snapchat feature which means less Snapchat eyeballs. Less Snapchat eyeballs means advertisers less likely to continue advertising on Snapchat which could hurt forward revenue and profit. Facebook last reported 400 million daily Instagram Stories users.... 112.77% more than Snapchat.

Would explain their low Q3 2018 guidance.

Q3 2018 guidance
Revenue between $265 million and $290 million vs analyst estimates for $289.2 million (FactSet)


DAUs: 188 million . . . up 8% from 173 million a year ago, but down from 191 million last quarter so no real growth

DAU break down by region
North America DAUs: 80 million . . . up 7% from 75 million a year ago, but down from 81 million last quarter
Europe DAUs: 61 million . . . up 7% from 57 million a year ago, but down from 62 million last quarter
Rest of world DAUs: 47 million . . . up 12% from 42 million a year ago, but down from 48 million last quarter

Didn't they use to report how much the average Snapchat user spent using app per day? Not seeing it anymore.

R&D expenses grew. $9.489 million during Q2 2018 vs $5.983 million a year ago and $8.791 million last quarter.
Same with sales and marketing expenses.... $3.991 million during Q2 2018 vs $1.589 million a year ago and $3.569 million last quarter.
Overall, expenses grew 79% to $22.514 million in Q2 2018 from $12.585 million a year ago.
Burning through cash.


Snap really needed that $250 million Saudi investment.

https://techcrunch.com/2018/08/07/saudichat/

Snapchat gets $250M investment from Saudi prince for 2.3%

Aug. 7, 2018

Snap Inc got a fresh infusion of cash from the Saudi royal family to help it survive despite losing $353 million this quarter. Prince Al-Waleed Talal tweeted a video of him and Snap CEO Evan Spiegel, noting that he’s invested $250 million in exchange for a 2.3 percent stake in Snap Inc. The investment raises questions about what say the Saudis will have in Snapchat’s direction.

Snap declined to comment on the news. But after an initial 11 percent pop after earnings was announced, Snap sank to be up 4 percent as the user shrinkage and Saudi investment sank in.

Al-Waleed Talal has previously buddied up to the U.S. tech sector, investing in Lyft and Twitter. Elsewhere, he’s recently made investments in European streaming music service Deezer, as well as Chinese ecommerce giant JD.com.

The prince had sat down with Snapchat CEO Evan Spiegel and COO Imran Khan back in 2015 to discuss a possible investment, but nothing came of it until now. The Arabic press release explains that the deal was done on May 25th. “Our investment in Snapchat is an extension of our strategy for personal investment in new technology through leading companies such as Lyft, JD.com, and social networking sites, Twitter” the release explains. “Snapchat is one of the most innovative social networking platforms in the world and we believe it is just beginning to surpass its true potential.”

The extra cash will extend Snapchat’s runway and give it more time to stabilize its business. With its daily user count now shrinking, it will have to find creative ways to squeeze more cash out of those that remain to keep revenue growing. That may take time, and Saudi Arabia just gave it more.
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Old 08-07-2018, 05:43 PM
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13.24 +0.12 (0.91%)
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