Snap Stock Slides After it Misses Expected Earnings
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. stock dropped more than 10% on Tuesday after it reported earnings that missed analysts expectations for Q4.
The self-described camera company, based in Santa Monica, reported revenue of $561 million versus the expected $563 million. The company's reported cash flow remains negative despite improvement over the year prior. The company said it lost $240.7 million, or 17 cents per share, compared with FactSet estimates of a 12-cent loss per share.
It reported a full year increase of 17%, or an additional 31 million, daily active users in 2019 compared to last year. The company, which is the maker of the Snapchat app, said it continues to invest in augmented reality platforms with 75% of its community engaging with AR on average daily. Snap also recently launched its new Bitmoji TV on Feb. 1, capitalizing on the popular Bitmoji Stories.
Snap reported that it expects revenue in Q1 of 2020 to be between $450 million and $470 million. That's above analysts expectations of $462 million.
Snap is up roughly 160% from last year, with a 52-week high $19.75 from its low of $6.80.
During Tuesday's earnings call, CEO and co-founder Evan Spiegel told analysts that the company was continuing to invest in its curated Discover page content.
"There are really interest shifts in content consumption," from television to mobile, Spiegel said. "Content hasn't caught up to this behavior shift (yet)."
Short-form video has taken off, especially with Gen Z, with youths moving into houses in Los Angeles, for example, specifically to generate TikTok videos as sponsored social media influencers. Meanwhile, soon-to-be launched, Quibi, or "quick bites," founded by Jeffrey Katzenberg and with CEO Meg Whitman is betting that bespoke episodic weekly videos that are under 10 minutes will take off.
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This week's virtual pitch showcase featured emerging real estate tech startups HomeOpenly, VHomes, and JoyHub.
Brad Inman, founder of Inman, the leading real estate news source along with Spencer Rascoff, co-founder, executive chairman at dot.LA will be leading the discussion as the two leading active investors and experts in this space.
Startup Pitch Showcase: Real Estate Tech youtu.be
HomeOpenly helps our users to make the opportunity of homeownership transparent, affordable, and an open experience. HomeOpenly is an innovative and young Internet company that designs, builds, and maintains a series of online marketplace solutions with focus on home search, automated valuation modeling (AVM), home buyer's and seller's representation services, mortgage origination, refinance, home insurance, renovation, design, staging, home inspections, home security, moving, home maintenance, title, escrow, cash offer stand-in programs, home warranty, and other real estate products and services. HomeOpenly utilizes Open Systems Design and Privacy by Design principles behind the unbiased information we provide and the value-added Open Marketplace™ that we maintain.
VHomes is disrupting the antiquated motel / affordable housing industries. A proptech startup that strategically identifies distressed and vacant housing opportunities, leveraging these assets and turning them into nightly, weekly, or monthly budget rental options. By providing travel or living options to those that need it most we are able to provide significant impact for our customers' lives. VHomes provides the best budget accommodation in the Sun Belt United States.
JoyHub is developing an open platform to connect and automate existing multifamily operator systems to improve operating performance, increase revenue opportunities and enhance resident engagement.
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<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzMyNjY2Ni9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTYzNDM4NDkzMH0.v5tfVFcyFVen8Rbrw6eaei4A3PqVjwnA7loioFZAR6w/image.png?width=980" id="e1ee0" class="rm-shortcode" data-rm-shortcode-id="8122ff13df54fa353a7929a9f837e41f" data-rm-shortcode-name="rebelmouse-image" />
Brad Inman, founder at Inman
Brad Inman, Founder at Inman
<p>Award-winning journalist and publisher, Brad Inman is the founder and owner of Inman, real estate's leading name in news, information and innovation since 1983. In addition, his Inman-branded real estate business and technology conferences bring thousands of thought leaders together each year to share best practices and promote innovation. Countless new products and companies have been launched at Inman conferences.</p><p>A native of Carlinville, Illinois, and a graduate of Boston University, Inman began his career as a housing policy analyst and community advocate who parlayed a weekly real estate column in the San Francisco Examiner at the dawn of the Internet era into a series of entrepreneurial ventures. In 1999, Inman founded HomeGain.com, an early provider of online marketing programs. HomeGain was sold to Classified Ventures, LLC, in 2005. That same year, Inman founded TurnHere, an online commercial video platform and, in 2008, founded Vook, an online e-publishing platform. He also was an early investor in Curbed.com and served as chairman of the board before it was sold to Vox Media. A compelling speaker, he is a regular at real estate events around the nation and has been a visiting lecturer in the School of Journalism at the University of California, Berkeley.</p><img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzMyNjY3NC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYxODI1NDY1N30.yjUCIE8Z16_yPW-8nNnSrs13pueF2m_9XoQ1B47d4eM/image.jpg?width=980" id="c54d2" class="rm-shortcode" data-rm-shortcode-id="924666e8437e4f21c7043e2abc6875f9" data-rm-shortcode-name="rebelmouse-image" />
Spencer Rascoff, Co-Founder, Executive Chairman
Spencer Rascoff, Co-Founder, Executive Chairman
<p>Spencer Rascoff is an entrepreneur and company leader who co-founded Zillow, Hotwire and dot.LA, and who served as Zillow's CEO for a decade. He is currently executive chairman of dot.LA and a board member at Zillow and TripAdvisor. In fall 2019 Spencer was a Visiting Executive Professor at Harvard Business School where he co-taught the "Managing Tech Ventures" course. In 2015, Spencer co-wrote and published his first book, the New York Times' Best Seller "Zillow Talk: Rewriting the Rules of Real Estate." Spencer is the host of "Office Hours," a monthly podcast on dot.LA featuring candid conversations between prominent executives on leadership, diversity and inclusion, and startups. </p>Related Articles Around the Web
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George Floyd Update: Disney Will Donate $5M to Social Justice Groups; a16z Announces Diversity Fund
Jun 03 2020
Here are the latest headlines regarding how the protests around the killing of George Floyd are impacting the Los Angeles startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for the latest update.
Today:
- Disney will donate $5M to Social Justice Groups
- Blck VC group launches 'We Won't Wait' campaign
- a16z VC firm launches fund to target diverse founders
- Snap stops promoting Trump's account in its Discover feature
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Disney will donate $5M to Social Justice Groups
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzM2OTY2MC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYzMjY2MTY2NX0._jc-luWmLRd9-UnBFZgyZJTm33I9_3T6Ssz9nZ3lkVY/image.jpg?width=980" id="7082f" class="rm-shortcode" data-rm-shortcode-id="c602ad745e2c03d3c0175cf24139e96f" data-rm-shortcode-name="rebelmouse-image" />ABC's TV sitcom Blackish aired two "monumental and timely episodes" this week.
<p>The Walt Disney company announced Wednesday that it will donate $5 million to nonprofit groups fighting for social justice, starting with a $2 million donation to the NAACP. </p><p>"The killing of George Floyd has forced our nation to once again confront the long history of injustice that black people in America have suffered, and it is critical that we stand together, speak out and do everything in our power to ensure that acts of racism and violence are never tolerated," said Disney chief Bob Chapek in a statement. "This $5 million pledge will continue to support the efforts of nonprofit organizations such as the NAACP that have worked tirelessly to ensure equality and justice."</p><p>In a statement, the company pointed to its previous social justice initiatives, including providing "millions of dollars in grants to help students from underrepresented groups make the dream of higher education a reality, including $2.5 million to the United Negro College Fund." Disney also noted that it matches employee donations to "eligible organizations" and that on Tuesday it re-aired two "monumental and timely episodes" of <em>Black-ish </em>on its ABC television networks before a primetime special titled "America in Pain: What Comes Next?" </p><p>In its quarterly earnings released last month, Disney reported nearly $40 billion in revenue in the six months to March 28, 2020. Net income over the same period was down 68% from the year prior, however, as most of the company's business units have been battered by the coronavirus pandemic.</p><p><em>— Sam Blake</em></p>Blck VC group launches 'We Won't Wait' campaign
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzM2OTYzNy9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0OTg1NjgyOX0.Slh0ELzeW9DWblh2PyPxbOBhprxqdU6UhlN8slDMBOY/image.jpg?width=2000&coordinates=0%2C57%2C0%2C42&height=1500" id="97bd1" class="rm-shortcode" data-rm-shortcode-id="267038b66b1b79bab468b27e79b053c4" data-rm-shortcode-name="rebelmouse-image" /><p>Venture capital has fueled billions of dollars in wealth but it has largely excluded black Americans. Only 1% of venture-funded startup founders are black and more than 80% of venture firms don't have a single black investor.</p><p>Blck VC, a group of young black investors and entrepreneurs are calling on the venture capitalist community to diversify their ranks and support the black community. Declaring Thursday, June 4th, a day of action, the group launched a campaign called "We Won't Wait." <a href="https://dot.la/blck-vc-2646151711.html" target="_blank">Read more >></a></p><p><em>— Rachel Uranga</em></p>a16z VC firm launches fund to target diverse founders
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzM2OTQ0MC9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY1MDkwMzg3MH0.dhLyHYGgwtjLRdt65OFroB4fgSdsiZTeTSSEG88d7Mw/image.png?width=980" id="a1f14" class="rm-shortcode" data-rm-shortcode-id="7a1c9842c8f468c18e05cdfc2be667a5" data-rm-shortcode-name="rebelmouse-image" />Ben and Felicia Horowitz will match up to an additional $5,000,000 total in any other donations.
<p>One of Silicon Valley's most prominent venture capital firms <a href="https://a16z.com/2020/06/03/talent-x-opportunity/" target="_blank">announced Wednesday</a> it is launching a new fund designed for entrepreneurs who have the talent, drive and ideas to build great businesses, but lack the background and resources to do so.</p><p>In a blog post, the firm says it has been working on the fund for six months. However, the timing of the news this week is fortunate for an industry with a <a href="https://pitchbook.com/news/articles/vc-firms-have-a-diversity-problem-do-they-care" target="_blank">serious diversity problem. </a><span></span></p><p>a16z plans to fund a small group of founders in the first year, then expand after that. The initial capital will come from $2.2 million in donations from partners. Ben and Felicia Horowitz will match up to an additional $5 from other donations as well. The firm will invest in exchange for equity in the business, but all returns will stay in the fund to finance future entrepreneurs, which aims to back products from underserved communities that also have an "interesting model, niche market, and/or a little traction to indicate the promise and potential."</p><p>"We're venture capitalists, not activists," the firm said in its post. "Entrepreneurship hasn't been accessible to everyone, but the fact remains that being an entrepreneur is one of the most powerful ways to own your own future, to increase mobility across time and place, to invent new ways of doing things, and to forge a new system. As we emerge from this tragic moment, let's build.</p><p><em>dot.LA co-founder and executive chairman Spencer Rascoff is a board partner at a16z.</em></p><p><em><span></span>— Ben Bergman </em></p>Snap removes Trump's account from its Discover feature
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMjY0ODQzMC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0MzYwNjI2NX0.iAteI6t1-vdRIqymUzeX5uJwPuIsRS9rqxTPuXASQBo/img.jpg?width=980" id="01215" class="rm-shortcode" data-rm-shortcode-id="f65582f8f474f612c8af0ff7acd0cc3f" data-rm-shortcode-name="rebelmouse-image" />Sam Blake<p>Snap has decided to no longer feature President Donald Trump's account on its Discover platform, where users can watch curated videos. </p><p>The Santa Monica-based company issued a statement Wednesday:</p><p>"We are not currently promoting the President's content on Snapchat's Discover platform. We will not amplify voices who incite racial violence and injustice by giving them free promotion on Discover. Racial violence and injustice have no place in our society and we stand together with all who seek peace, love, equality, and justice in America."</p><p>A Snap spokesperson said the company made the decision over the weekend. On Sunday, Snap CEO Even Spiegel wrote to his employees, condemning racial injustice. <a href="https://dot.la/trump-snapchat-2646151172.html" target="_blank">Read more >></a></p><p><em>— Sam Blake</em></p>From Your Site Articles
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- George Floyd Videos Were Watched Over 1.4 Billion Times - dot.LA ›
- National Venture Capital Association Launches Diversity Nonprofit - dot.LA ›
- Can Venture Capital Solve Its Whiteness Problem? - dot.LA ›
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