Snap Inc. (NYSE: SNAP) has announced financial results for the quarter ending 31 March 2018.
Revenue was $230.7 million, up 54% year-on-year and down 19% sequentially.
The growth is attributed to Snap Ads and, while the sequential fall is attributed to seasonal app use and the new interface redesign (which received a mixed response from consumers).
The number of Daily Active Users (DAU) rose from 166 million to 191 million year-on-year, an increase of 15%.
DAUs increased 2% quarter-on-quarter, from 187 million in Q4 2017.
Average revenue per user (ARPU) was $1.21 in Q1, a rise of 34% year-on-year but a decline of 21% sequentially.
Adjusted EBITDA loss was $(217.9) million for the quarter, an increase of 16% year-on-year and an increase of 37% sequentially.
Capital expenditures increased to $36.3 million in Q1 2018 from $18.0 million in Q1 2017.
Snap CEO Evan Spiegel said in a statement: “We are now focused on optimizing the redesign based on our ongoing experimentation and learning. For example, when we separated friends’ Stories from creator Stories, we also moved them to the left side of the camera and merged them into the Chat feed.
“We learned that combining watching Stories and communicating with friends into the same place made it harder to optimize for both competing behaviors.”
He added: “Our redesign created some headwinds in our revenue this quarter by disrupting user behavior and creating some apprehension among our advertising partners.
“We believe that our current path forward will address both issues, and that our advertising business has benefitted and will continue to benefit from the tough decisions we make in order to create and maintain a positive and healthy environment for our community over the long term.”
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