According to Snap’s most recent earnings report, the company experienced 44 percent year-over-year revenue growth in Q2 2018, bringing in $262 million for the quarter. This is a $32 million increase over what it earned during the first quarter of the year, but still nearly $25 million short of the $286 million earned in Q4 2017.
While revenue was up, the number of daily active users on the app fell 2 percent compared to Q1, dropping from 191 million during the first quarter of the year to 188 million in Q2.
Snapchat is having difficulty gaining its footing this year. In May, the company experienced a drop in revenue from Q4 2017 to Q1 2018 but saw a slight increase in DAUs. With the latest report, revenue is now up, but DAUs are down. Still, year over year, the numbers are positive, with revenue up 44 percent and DAUs up 8 percent compared to Q2 2017.
“We are excited by the progress we have been making and are optimistic about the opportunities ahead as we continue to invest in innovation,” says CEO and co-founder Evan Spiegel.
Much of Snap’s efforts in Q2 have been focused on its advertising platform. Most recently, the company launched a beta version of Snap Private Marketplace, inviting a limited number of its Discover partners the ability to offer ad inventory on their channels within the app. It also brought its 6-second, non-skippable Commercials to its self-serve Ads Manager, along with Story ads and AR Lenses.
The company also began partnerships with four news distribution services — Storyful, NewsWhip, SAM Desk and Tagboard — to open up news-related content on the app to more audiences.
Snap says it expects to reach between $265 million and $290 million in Q3 2018. To gain the financial hold it had during Q4 2017, it will have to hit the high end of its projected outcomes for next quarter.