In the last three months, Snapchat released disappointing earnings in their second quarter as a public company. The stock cratered to 11. Surprising, it rallied to $15 without significant financial news. NBC News signed a deal to broadcast on the app but their $500 million investment has been known since March 2017. 29 million viewers watched the NBC channel on Snap (1). CNN, ESPN, and E! News are other networks on the app. The big question is whether Snap can charge NBC access although it is an investor. Also, Snapchat moved away from advertising revenue sharing to a flat licensing fee up front (2). This may limit the number of content partners. Meanwhile, Facebook has clear advertising revenue stated for video content.
Revenue in Europe increased from 13 to 22 million but operating expenses increased from 196 to 229 million (3).
Snapchat maps and links in Snaps were also recently introduced. Post a video to "Our story" and you can see it gets a lot of views.
In the next three months, Snapchat is expected to announce earnings on November 08, 2017 with an estimated loss of $0.14 per share. The biggest questions are whether earnings will increase with more user engagement and more licensing deals.
For the
1. http://variety.com/2017/digital/news/nbc-news-snapchat-show-29-million-viewers-1202532550/
2. https://www.portada-online.com/2016/10/20/snapchat-moves-from-ad-revenue-sharing-to-licensing-fees/
3. https://investor.snap.com/~/media/Files/S/Snap-IR/reports-and-presentations/q2-17-earnings-slides.pdf
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