Oct 25, 2018 - Business

Snap beats revenue expectations, user base continues to shrink

Snapchat mobile app. Photo: Thomas Trutschel/Photothek via Getty Images

Snapchat's parent company posted $298 million in revenue for 2018 Q3, significantly beating analyst expectations of $283.21 million, but its user base continues to shrink.

  • It reported 186 million daily active users, down 1% from the previous quarter when it had $88 million, also down from 191 million in 2018 Q1. It predicts a decline in the next quarter as well.

Why it matters: The social media company has had a rough year, including a poorly received app redesign and struggles to add more users.

Snap says that the decline in users is mostly on Android. The company is currently rebuilding its Android app and expects improvements to help alleviate this.

  • Additionally, CEO Evan Spiegel said during Thursday's analyst call that the company also has opportunities to attract more users among older audiences, which he described as a marketing and communications challenge, as well as more younger users in other regions in the world. Improvements of the Android app should also help with the latter, he said.

Snap's stock price dropped to about $6.75 in after-hours trading, down about 3.5%.

What's next

Bolton alleges in book that Trump tied Ukraine aid to investigations

Photo: Alex Wong/Getty Images

President Trump's former national security adviser John Bolton alleges in his forthcoming book that the president explicitly told him "he wanted to continue freezing $391 million in security assistance to Ukraine until officials there helped with investigations into Democrats including the Bidens," the New York Times first reported.

Why this matters: The revelations present a dramatic 11th hour turn in Trump's Senate impeachment trial. They directly contradict Trump's claim that he never tied the hold-up of Ukrainian aid to his demands for investigations into his political opponent Joe Biden.

Honoring Kobe Bryant: Sports stars, politicians and celebrities mourn NBA great

Kobe Bryant on court for the Los Angeles Lakers during the Sprite Slam Dunk Contest on All-Star Saturday Night, part of 2010 NBA All-Star Weekend at American Airlines Center in Dallas in February 2010. Photo: Jed Jacobsohn/Getty Images

Sports stars, politicians and celebrities paid tribute to NBA legend Kobe Bryant, who was killed in a California helicopter crash alongside his 13-year-old daughter, Gianna, and seven others on Saturday. He was 41.

What they're saying: Lakers great Shaquille O'Neal said in an Instagram post of his former teammate, "There's no words to express the pain I'm going through now with this tragic and sad moment of losing my friend, my brother, my partner in winning championships, my dude and my homie. I love you brother and you will be missed."

Go deeperArrow3 hours ago - Sports

What's next: Trump's broader travel ban

A sign for International Arrivals is shown at the Seattle-Tacoma International Airport. Photo: Ted S. Warren/AP

President Trump is expected to announce an expanded travel ban this week, which would restrict immigration from seven additional countries — Nigeria, Myanmar, Sudan, Belarus, Eritrea, Kyrgyzstan and Tanzania, per multiple reports.

  • The announcement would come on the third anniversary of Trump's original travel ban, which targeted Muslim-majority nations, per Axios' Stef Kight.