Snap's ad revenues fall short of expectations
The fourth quarter of 2019 saw Snapchat's user base grow by 17% to 218 million, but while ad revenues increase 44% year-over-year, they failed to hit analysts' estimates.
It had been predicted that Snap would hit an ad revenue of £563 million, but its final sum was short of this, at £561.9 million. Net loss at the social platform widened to $241 million, nearly $50 million higher than its losses in Q4 2018.
In the face of competition more trusted and recognisable ad platforms, Facebook and Google, Snap is struggling to grab marketing spend. The two larger platforms have a combined share of digital ad spend of over 50%, where Snap's total accounts for just 0.5%.
Evan Spiegel, Snap CEO, said: “In 2019 we saw momentum across the board. The strength in our core business gives us confidence in our long-term growth and profitability and we’re excited to build on these results in 2020 and beyond.”