Snap Inc (NASDAQ:SNAP) delivered a quarter of mixed progress, beating analyst expectations on revenue and posting a surprise positive net income of $45 million. Total revenue grew 10% year-over-year to $1.72 billion, a notable improvement from the stagnation seen in previous years. Average Revenue Per User (ARPU) also topped forecasts at $3.62. However, despite these improving financial metrics, the underlying numbers were far from spectacular.
The softening user trends in Snap’s most lucrative market is a big concern. While global daily active users (DAUs) grew to 474 million, North American DAUs actually declined sequentially from 98 million to 94 million. Management attributed this to a reduction in marketing spend to favor “profitable growth,” but the loss of users in high-ARPU regions remains a major sticking point for Wall Street.
For more details, key highlights, and commentary, check out the high-level earnings summary.
