Snap CEO says Shares Won’t Be Sold
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Snap CEO says Shares Won’t Be Sold

Snap CEO says Shares Won’t Be Sold

Snapchat has had a disappointing Q2 earnings report, but amid recent criticism, cofounders Evan Spiegel and Bobby Murphy agree they will not sell any shares this year. The company stated it will withhold shares they’re owed to pay for any necessary taxes.

Although the co-founders reassured investors they would not sell any shares this year, a 5-month promise will not relieve their worries. Snapchat’s shares have dropped nearly 17% in extended training, and their second quarter revenue statistics are dramatically lower than what analysts anticipated, which has sent shares down to $12. With the stocks initially debuting at a healthy $24, its value has dropped considerably considering its initial public offering price was $17.

Spiegel spoke with analysts about the low numbers, “Given the amount of speculation around the lock-up expiration, I feel it is important to note that Bobby and I will not sell any of our shares this year. We believe deeply in the long-term success of Snap.”

One report announced that Snap generated $5.4 million in “other” revenue, which is compared to $8.3 million in Q1 and $4.5 million in Q4.

With Snapchat experiencing trouble in paradise, there still are some impressive numbers with regard to its application use. The new AR hot dog craze has attracted over 1.5 billion total views.

Per TechCrunch, Snap heads “glossed over its shortcomings in user count and revenue to focus on several vanity metrics during its earnings call” with some of the following statistics:

● The average user creates 20 Snaps per day.

● Publisher Story views are up 30 percent quarter-over-quarter.

● Snap doubled the number of original “Shows” that premiered on its platform in Q2 versus Q1, with some getting more than 10 million views per episode.

● 250 million Snaps are saved to Memories each day.

● Snapchat users under age 25 spend more than 40 minutes per day on the app, while those over 25 spend more than 20 minutes a day on the app. That one-ups Instagram for teens, where under-25s spend more than 30 minutes per day, but falls short of Instagram’s older age group that uses it for 24 minutes per day.

With sharp usage numbers, it may be possible for Snapchat to turn their luck around over the next quarter.

Mohammad Ali Sultani
Mohammad Ali Sultani
Mohammad Sultani is currently an undergraduate at the University of San Diego pursuing a degree in Political Science and English. As an experienced writer for various technology, law, and political news outlets, he has shown great potential in his writings and hopes to continue developing his skills. With the goal of becoming an established lawyer and writer, Mohammad is determined to help those in need on both ends of the spectrum.

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