Snap Surges as Earnings Beat Expectations, Users Continue to Climb
Tami Abdollah
Tami Abdollah is dot.LA's senior technology reporter. She was previously a national security and cybersecurity reporter for The Associated Press in Washington, D.C. She's been a reporter for the AP in Los Angeles, the Los Angeles Times and for L.A.'s NPR affiliate KPCC. Abdollah spent nearly a year in Iraq as a U.S. government contractor. A native Angeleno, she's traveled the world on $5 a day, taught trad climbing safety classes and is an avid mountaineer. Follow her on Twitter.
Snap Inc. beat analyst expectations Tuesday when it reported earnings for the first quarter of 2020, seeing its stock surge 17% in after-hours trading.
The social media and self-described camera company saw its revenue increase 44% year-over-year to $462 million amid the economic recession caused by the novel coronavirus pandemic. The Santa Monica-based company also saw daily active user growth increase by 20% year-over-year, or by 39 million, with 229 million users.
"We are seeing sustained communication volumes on our service that eclipse the peaks we see during major holidays," said CEO and cofounder Evan Spiegel during Tuesday's earnings call. "For example, communication with friends increased by over 30 percent in the last week of March compared to the last week of January, with more than a 50 percent increase in some of our larger markets. Snapchat has always been focused on helping people build and maintain their friendships, which is especially critical as people practice physical distancing and shelter in their homes."
Snap's last reported earnings and forward-looking estimates were in February before most countries outside of China had been hit by COVID-19. The move into economic recession has been especially challenging for Snap's advertising partners, which has impacted the company's growth rate, the company said. While year-over-year growth was roughly 58% in January and February, it declined to about 25% in March. In North America, revenue grew 40% year-over-year in Q1, a small drop from 42% in the prior quarter.
Yuval Ben-Itzhak, CEO of Socialbakers, a social media marketing platform, said Snap's strong Q1 earnings are a pleasant surprise but warned that because COVID-19 hit late in Q1, "Snap is likely not to have seen such a great impact on its ad revenue. It will be Q2 when they feel the true impact on their business."
Ben-Itzhak noted that because Snap is not the primary method for brands with big ad budgets and is more experimental, the platform is more vulnerable to budget cuts than other social media platforms.
Because of the rapidly changing environment caused by the pandemic, the company's Chief Financial Officer Derek Andersen said it wouldn't share financial guidance for Q2 such as revenue or adjusted EBITDA guidance.
As people have turned to videoconferencing and live streaming, the company said it's seen 30 times the increase in daily downloads of their Snap Camera, a desktop app that allows people to add Lenses -- Snap's augmented reality additions -- to video services they are using.
Snap has launched new products and features specifically in response to COVID-19, including what it says is its first-ever fundraising AR Lens to drive donations from 33 countries to the World Health Organization's COVID-19 Solidarity Response Fund. The effort uses its Scan camera search technology to recognize 23 currency notes and to trigger different lenses per currency to visually show money being "raised" and transformed into the three pillars of the fund, namely, the image of a hospital for patient care; a mask for medical supplies; and beakers that represent research and development.
Snap also added a new feature called "Here For You" that provides proactive in-app support to users who may be experiencing a mental health or emotional crisis, or want to learn more to help friends, Spiegel said. The company has also published more than 700 Discover editions with coverage on COVID-19 developments from content partners, in-house news teams and agencies like the Centers for Disease Control and Prevention and the WHO.
Snap benefited from users engaging more with its "Discover" content, which includes various Hollywood content partners and brand marketers -- as overall ad revenue has dropped elsewhere. Users watching Discover content increased more than 35% year over year. It has also added new original content like the docuseries Nikita Unfiltered.
Spiegel said the company has seen a "sharp increase" in group-related activities like chat and games. The company launched five new games in Q1, and saw average daily time spent playing games more than double in March -- as the pandemic forced people to stay in their homes.
The company still has a negative free cash flow of $5 million, though it improved by $73 million.
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Minutes into filling out my absentee ballot last week, I was momentarily distracted by my dog Seamus. A moment later, I realized in horror that I was filling in the wrong bubble — accidentally voting "no" on a ballot measure that I meant to vote "yes" on.
It was only a few ink marks, but it was noticeable enough. Trying to fix my mistake, I darkly and fully filled in the correct circle and then, as if testifying to an error on a check, put my initials next to the one I wanted.
Then I worried. As a reporter who has previously covered election security for years, I went on a mini-quest trying to understand how a small mistake can have larger repercussions.
As Los Angeles County's 5.6 million registered voters all receive ballots at home for the first time, I knew my experience could not be unique. But I wondered, would my vote count? Or would my entire ballot now be discarded?
<p>There are reasons enough to worry about mail-in-ballots counting, even without the appearance of fake ballot boxes and the unfounded rhetoric that has filled the nation's airwaves over the last months. After all, much of the information I found online told me to notify a poll worker if I made an error. Alas, no poll worker at home.</p><p>"I don't think your experience is unique, and it's exacerbated by how big L.A. is," said Eddie Perez, election administration and technology expert with the nonpartisan, nonprofit <a href="https://www.osetfoundation.org/" rel="noopener noreferrer" target="_blank">OSET Institute</a>. "These experiences are happening across the country [as] many voters are voting by mail the first time and they don't know what to do. It's a microcosm of all of this change."</p><p>Part of the problem was that I didn't receive my sample ballot beforehand and so didn't engage in the practice round I typically do. Worse though, the instructions that came with my ballot said nothing about what to do if you accidentally make the wrong choice. The only advice is to call a phone number or go online and request a new ballot. Does that mean the whole thing won't count? But it was such a small mistake.</p><p>"That's a failing right there, the fact that they didn't include it on the instruction sheet," said Perez, who previously worked for Hart Intercivic, voting technology company, and has made thousands of ballots in his career. He noted that in Colorado, the instructions for how to correct a mistake are on the ballot instructions.</p><p>I called the phone number, but couldn't get through to a person. I then sent an email to a recommended public address asking if my ballot was "spoilt" and if I needed a new one.</p><p>Then, for hours into the night and through early the next morning I searched the vastness of the internet for an answer.</p>
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDUxMjgwOS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYxODEyMTM1NH0.eGBNQueLJopk_XhIaWqmpFPgnsHuEk1qVeQmRMH-DY4/image.jpg?width=980" id="3663d" class="rm-shortcode" data-rm-shortcode-id="3a4af8f33f024f411c8cfef27e2678a1" data-rm-shortcode-name="rebelmouse-image" />
My distractingly sweet dog, Seamus.
Photo by Tami Abdollah
<p>Someone <a href="https://www.kvue.com/article/news/investigations/defenders/can-i-correct-a-mistake-on-my-mail-in-ballot-with-wite-out/269-3f248b3a-ee4d-41ec-94bd-a0af4a8670d3" target="_blank">asked about whether you could use whiteout</a> to blot out the mistaken choice. The consensus online seemed to be "no" that the ballot could seem tampered with. One <a href="https://www.washingtonpost.com/blogs/all-opinions-are-local/wp/2018/01/02/its-an-invalid-ballot-period/" target="_blank">Washington Post opinion article from 2018</a> argued that any efforts to rectify a ballot should invalidate it entirely. <a href="https://www.kqed.org/news/11840343/how-to-make-sure-your-mail-in-ballot-isnt-rejected-in-california#mistake" target="_blank">Another recent article by KQED said</a> that you should put a line or X through the wrong choice and that would be fine. Sadly, I'd already made a different mark by the proper choice. I read <a href="https://www.marketwatch.com/story/4-common-mistakes-that-could-get-your-mail-in-ballot-rejected-and-how-to-make-sure-your-vote-is-counted-11601579628" target="_blank">stray marks can also be a problem</a> and invalidate the ballot. Are initials considered stray marks?</p><p>Kim Alexander, president of the nonprofit, nonpartisan California Voter Foundation, empathized, noting that "vote by mail shifts the responsibility of getting it right from poll worker to a voter, and that's a big change. It's not insignificant" or easy, and the rules usually differ between counties.<br></p><p>The next morning I called the L.A. County Registrar-Recorder/County Clerk's helpline and was connected to a worker whose garbled voice seemed to match my emotions. I presented my dilemma.</p>
<p>"Hmmm it doesn't say anything about that here," the worker told me. "I'll have to put you on hold."<br/></p><p>After several more minutes of terrible hold music, she told me her connection was bad because she was working from home, and she would call me back. It didn't happen.</p><p>When I called the registrar's office back, I was told there was a 35 minute wait for a human being.</p><p>The worker who called me back told me that the specific measure I improperly filled out would not get counted, but the remainder of my votes should. I asked if my initials would present as stray marks and invalidate my ballot, and she said it shouldn't.</p><p>Over the course of those two days, I wondered if it was best to get the ballot sent in early even if one measure didn't count, or if I should just go vote early in-person.</p><p>Because Los Angeles County ballots go through an optical scanner, I wondered whether a human being would review the ballot or if any discrepancy is tossed. There is little reporting about how the county handles mail-in ballots, especially at scale. Is there a human being who reviews the process? A bipartisan team? How technically savvy is the scanner and what exactly can it differentiate?</p><p>The registrar's office never replied to repeated official calls and emails for answers to those questions.</p><p>Perez, the elections expert, told me that in his experience a mistake should not invalidate the entire ballot and that most modern digital scanning technology "should flag contests with questionable marks and present them to human reviewers" who can discern the voter's intent and make sure it's properly recorded.</p><p>Both Perez and Alexander also introduced another potential wrinkle I had not even thought about: In some states having personally identifiable information on a ballot — possibly like my initials — could invalidate the ballot because state laws could see that personal information as a violation of the secrecy of the ballot. Ack!</p><p>Perez said part of the problem with mail-in ballots is that unlike the traditional Election Day infrastructure, unless election officials make proactive efforts to provide more details, there is less knowledge about how votes are processed and counted when they are mailed in.</p><p>"It places a really big burden on the election officials [to] have resources to answer all these questions," Perez said. "How are you ensuring you have good factual information and you're passing it to all the worker bees you just hired?"</p><p>Neither Perez nor Alexander could say for sure what would happen with my initials on the ballot. Both thought it <em>should </em>probably be fine, but perhaps it would violate vote secrecy.</p><p>"You stumped the band," said Alexander, who added she was considering updating their own FAQ for voters.</p><p class="shortcode-media shortcode-media-rebelmouse-image">
<img type="lazy-image" data-runner-src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDUxMjgxNC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY2NjQzNTgwOX0.SiflyT6B6FbAoPLrIrMVk01oeGw7_HIsZS7b4jQc7Lc/image.jpg?width=980" id="ef35d" class="rm-shortcode" data-rm-shortcode-id="54ab7d5c08029f153009ed6bc7ef15cd" data-rm-shortcode-name="rebelmouse-image" />
<small class="image-media media-caption focus-visible" data-focus-visible-added="" placeholder="Add Photo Caption...">My sadly imperfect ballot.</small><small class="image-media media-photo-credit" placeholder="Add Photo Credit...">Photo by Tami Abdollah</small></p><p>There are many more ways to make a mistake when mailing in your ballot, in one fashion or another. <a href="https://apnews.com/article/a45421048cd89938df7c882891a97db5" target="_blank">The Associated Press reported</a> this summer that "more than 100,000 mail-in ballots were rejected by California election officials during the March presidential primary." Among those were 27,525 which didn't have a signature or didn't have a signature match the one on record. A friend of mine was one of those, and she trekked out to vote early and in-person because she couldn't recall what her on-file signature looked like.<br/></p><p>I had no issues with my signature, it's been the same for decades, but I felt a little bereft over my supremely non high-tech problem. I continued to cull through the interwebs.</p><p>It was only much later, after searching diligently online by various keywords, that I stumbled upon a seemingly definitive answer in the latest version of <a href="https://www.sos.ca.gov/elections/uniform-vote-counting-standards" target="_blank">California's Uniform Vote Counting Standards</a>. It turns out, whiteout, check marks, X marks and even writing "no" or "yes" can help confirm the vote you meant to cast. It's unclear what the optical scanner can do or whether the county has a human involved in the process though. And there was, sadly, nothing about whether initialing a choice would invalidate the secrecy of my ballot or be considered an invalid "random marking."</p><p>My angst was alleviated when the decision was taken out of my hands. The registrar's office emailed me back, and without answering my question about if the ballot would have been counted, they told me a new one would arrive in five days.</p><p>The reply did open up a whole new line of unanswered questions. I mean, is the existence of a second ballot invalidating? I emailed back: "What happens to my old ballot? How do I get rid of it?"</p><p>(The first ballot is automatically suspended to issue a second one, I later learned. And you can tear it up or put it through a paper shredder.)</p><p>And still, the question remains — what if I had mailed in that ballot.</p><p>Alexander also went down the rabbit hole with me, emailing me on a Saturday morning that she "woke up annoyed by our collective inability to answer" the question. She dug around and found that a <a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201120120SB183" rel="noopener noreferrer" target="_blank">2011 California law known as the "Doodle Law"</a> would have likely been applied in my case. <a href="http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0151-0200/sb_183_cfa_20110824_171242_asm_floor.html" rel="noopener noreferrer" target="_blank">It states</a> that rather than reject a ballot that is marked in a way to identify a voter, that election workers separate and duplicate the ballot (without the problematic identifier) like for other defective ballots, before running it through the scanner.</p><p>So there it is, my vote would have probably counted if I had mailed in my ballot. But now I'll be sending a brand new on instead. In the end, it's clear that the state and local authorities have tried and are trying their best to ensure that all mail-in ballots count regardless of very normal human mistakes (see <a href="https://dot.la/voting-by-mail-tips-how-to-avoid-pitfalls-2648194341.html" target="_blank">this sidebar</a> on how to up those chances).</p><p>But my takeaway lesson from all this is that it's probably <a href="https://dot.la/voting-by-mail-tips-how-to-avoid-pitfalls-2648194341.html" target="_blank">best not to make a mistake in the first place</a> when voting by mail, oh, and maybe put your dog in a separate room while you vote.</p><p><em>___</em></p><p><em>Hit me up if you have any other election and voting-related questions. My DMs are open on </em><a href="https://twitter.com/latams" rel="noopener noreferrer" target="_blank"><em>Twitter @latams</em></a><em> You can also email me at tami(at)dot.la, or ask for my contact on Signal, for more secure and private communications.</em></p>Related Articles Around the Web
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<p>The inaugural <a href="http://dot.la/" target="_self">dot.LA</a> Summit will feature a curated selection of disruptive and innovative L.A.-based startups, keynote speakers and panelists, made up of founder CEOs and C-level executives working in tech, media, entertainment and healthcare. </p><p>The conference will draw over 500 guests, including early-to-late stage VCs, as well as growth-stage, and angel investors. The Summit will be an online event full of exciting keynote programming, interactive panels, a pitch competition, workshops, an awards show and relationship-building.</p><p>Other recently announced speakers include:</p><ul class="ee-ul"><li><a href="https://www.linkedin.com/in/billgurley/" rel="noopener noreferrer" target="_blank">Bill Gurley</a>, general partner at Benchmark</li><li><a href="https://www.linkedin.com/in/tracierotter/" rel="noopener noreferrer" target="_blank">Tracie Rotter</a>, former partner at GV </li><li><a href="https://www.linkedin.com/in/beatrizacevedo/" rel="noopener noreferrer" target="_blank">Beatriz Acevedo</a>, CEO & founder at Suma Wealth</li><li><a href="https://www.linkedin.com/in/richardjennifer/" rel="noopener noreferrer" target="_blank">Jennifer Richard</a>, principal at Bonfire Ventures</li><li><a href="https://www.linkedin.com/in/gurug/" rel="noopener noreferrer" target="_blank">Guru Gowrappan</a>, CEO at Verizon Media Group</li><li><a href="https://tcg.co/team/jesse-jacobs/" rel="noopener noreferrer" target="_blank">Jesse Jacobs</a>, co-founder and partner at The Chernin Group, LLC</li><li><a href="https://www.linkedin.com/in/nader-pouratian-46060424/" rel="noopener noreferrer" target="_blank">Dr. Nader Pouratian, MD</a>, professor and vice chair of neurosurgery at UCLA Health</li><li><a href="https://www.linkedin.com/in/morgandebaun/" rel="noopener noreferrer" target="_blank">Morgan DeBaun</a>, CEO and founder of Blavity Inc</li><li><a href="https://www.linkedin.com/in/spencerrascoff/" rel="noopener noreferrer" target="_blank">Spencer Rascoff</a>, co-founder of <a href="http://dot.la/" rel="noopener noreferrer" target="_self">dot.LA</a> and Zillow</li><li><a href="https://www.linkedin.com/in/rich-pierson-406126133/" target="_blank">Rich Pierson</a>, co-founder and CEO Headspace Inc.</li><li>Alex Pall and Drew Taggart of the Chainsmokers</li><li><a href="https://www.linkedin.com/in/elanlee/" target="_blank">Elan Lee</a>, co-founder, Exploding Kittens</li><li><a href="https://www.linkedin.com/in/jessedraper/" target="_blank">Jesse Draper</a>, general partner at Halogen Ventures</li><li><a href="https://www.linkedin.com/in/nicholasraby/" target="_blank">Nick Raby</a>, head of corporate real estate, North America at Facebook</li><li><a href="https://www.linkedin.com/in/michelle-lozzi/" target="_blank">Michelle Lozzi</a>, director of experience, Reddit</li><li><a href="https://www.linkedin.com/in/warrenkleban/" target="_blank">Warren Kleban</a>, director of real estate and workplace at Instacart</li><li><a href="https://www.linkedin.com/in/saudsiddmd/" target="_blank">Saudi Siddiqui, M.D.</a>, co-founder and CEO, SketchyMedical</li><li><a href="https://www.linkedin.com/in/jonathan-neman-9a28aa8/" target="_blank">Jonathan Neman</a>, co-founder & CEO, sweetgreen</li><li><a href="https://www.linkedin.com/in/robynmward/" target="_blank">Robyn Ward</a>, CEO, FounderForward</li><li><a href="https://www.linkedin.com/in/gregorymilken/" target="_blank">Gregory Milken</a>, managing director, March Capital</li><li><a href="https://www.linkedin.com/in/annawbarber/" target="_blank">Anna Barber</a>, managing director at Techstars LA</li><li><a href="https://www.linkedin.com/in/matthew-bakal-64b1b5114/" target="_blank">Matthew Bakal</a>, executive chairman and co-founder at Atom Tickets</li><li>Ophir Lupu, UTA's head of video games</li></ul><h2><a href="https://www.eventbrite.com/e/2020-dotla-summit-tickets-120431061547" rel="noopener noreferrer" target="_blank">Register here!</a><a href="https://www.eventbrite.com/e/2020-dotla-summit-tickets-120431061547?utm_source=eventbrite&utm_term=ctabutton&utm_medium=ebcampaigns&utm_campaign=338856&aff=odeccpebemailcampaigns&mipa=ABIdvVt5V-LonSObVYOesxz7zxO2TnB08zMLuJZ_KJSqgAY0HQCE5zj3vDkGu7fmK8V6RzcO4NFnZ4DhUH3j0awLk8lP5Qy10URZsg1fzN-nj8dvyBSRvCExeLVriUcONk_Q9KRiPrgyxYpzePIgdIo55vSg-rR8TLuQypTCscrCm2KymHnjZcUYzIdnpTFH2MCtu0fx73NU9G8X8XsEZLVsUOhL6xqDLRLF7SsJojlZnyRNJjFA7ly329t2jTfruejtsMS0y3T5#tickets" rel="noopener noreferrer" target="_blank"></a></h2><p>GA registrants will receive full access to both days of content.</p><p>VIP registrants will receive special gifts from dot.LA and our partners as well as daily lunch and other surprises.</p><p>We look forward to welcoming you to a fun and informative, not-to-be-missed event!</p><p>Stay tuned for more speaker announcements and the latest dot.LA Summit news!</p>
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<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDUwMzUyNy9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY1Nzg3NTQ1M30.N0QsP8QYMnkBJp5ZVYpxx--DwnqjTF-Ret-2OhiK2fk/img.jpg?width=980" id="82def" class="rm-shortcode" data-rm-shortcode-id="8810c528a6efb9f54947d07eaae2be60" data-rm-shortcode-name="rebelmouse-image" />Bill Gurley, General Partner at Benchmark Capital
Bill Gurley, General Partner at Benchmark Capital
<p>Bill Gurley has spent over 15 years as a General Partner at Benchmark Capital. Prior to Benchmark, Bill was a partner with Hummer Winblad Venture Partners.<br></p><p>Before entering the venture capital business, Bill spent four years on Wall Street as a top-ranked research analyst, including three years at CS First Boston focusing on personal computer hardware and software. His research coverage included such companies as Dell, Compaq, and Microsoft, and he was the lead analyst on the Amazon IPO. In both 1995 and 1996, Bill was a member of the Institutional Investor All-American Research Team.</p><p>Prior to his investment career, Bill was a design engineer at Compaq Computer, where he worked on products such as the 486/50 and Compaq's first multi-processor server. For the past fifteen years, Bill has authored the Above the Crowd blog which focuses on the evolution and economics of high technology businesses.</p><p>Over his venture career, he has worked with such companies as <a href="http://www.grubhub.com/" target="_blank" rel="noopener noreferrer">GrubHub</a> (IPO: GRUB), <a href="https://nextdoor.com/" target="_blank" rel="noopener noreferrer">Nextdoor</a>, <a href="http://www.opentable.com/san-francisco-restaurants" target="_blank" rel="noopener noreferrer">OpenTable</a> (IPO: OPEN, Acquired by Priceline), <a href="http://www.stitchfix.com/" target="_blank" rel="noopener noreferrer">Stitch Fix</a> (IPO: SFIX), Uber, and <a href="https://www.zillow.com/" target="_blank" rel="noopener noreferrer">Zillow.com</a> (IPO: Z).</p>From Your Site Articles
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