Snap Inc (SNAP) Says App Redesign Having Positive Effects

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Snap added almost 9 million daily active users in the last quarter, the most since the third quarter of 2016, pumping its daily user base to 187 million.

Westpac Banking Corp boosted its position in Snap Inc (NYSE:SNAP) by 42.0% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC).

Snap blew past Wall Street expectations with bumper revenue and daily active user growth.

Shares in the owner of the Snapchat app's have had a poor performance since the company went public previous year amid concerns about competition from Instagram. However, in the call to investors on Tuesday, Snap warned that brand spending, which often peaks at the end of the year, could fall again in Q1 and lead to lower revenue to kick off 2018.

Investors will be glad to hear that more than 90pc of Snap Ads were purchased programatically, meaning the damage caused by the move to an auction-based system that initially hurt ad prices seems to have reduced.

The Do Not Disturb feature, which has been present in Facebook Messenger and Apple's iMessage for years, comes after a few important additions to Snapchat.

One area of growth the company is focused on is Android.

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On the other hand, the cash and marketable securities were tallied to be at a whopping $2.0 billion at December 31, 2017; while the cash management reduced Q4 2017 cash burn to $255 million, a whopping 49% decrease.

Chief Executive Evan Spiegel credited improvements to the version of Snapchat that runs on Android phones, saying the retention rate of new Android users rose by almost 20 per cent compared to a year earlier.

The retention rate of new Android users increased by almost 20% when compared to a year ago, meaning that the people who try Snapchat on Android are much more likely to stick around and become daily active users. In the last quarter, Snap lost $443 million, up from the $124 million it lost in Q3 2016. The price per impression decreased 25% sequentially, he said. These things even can now also disappear, adding that temporary, blink-and-you'll-miss-it appeal that Snapchat was initially alone in providing.

Snap has been constantly tweaking its service, redesigning and adding new features, aiming to improve the overall experience for existing users and make it more appealing to new customers. The redesign is still not broadly rolled out, and Snap has said little about why.

"Compared to the old design, core metrics around content consumption and time spent in the redesigned application are disproportionately higher for users over the age of 35, which bodes well for increasing engagement among older users as we continue to grow our business", he said.

This is actually the first time that Snap beat Wall Street expectations, allowing the company to finish 2017 strong.

Snap's mother company, Snap Inc., reported on Tuesday a revenue of $285.7 million for Q4.

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