Архив метки: Google Cloud

Snapchat fully rolls out reengineered Android app, boosting usage

After a year of its user count shrinking or staying flat, Snapchat is finally growing again, and more growth is likely on the way. That’s because it’s finally completed the rollout of Project Mushroom, aka a backend overhaul of its Android app that’s 25 percent smaller and 20 percent faster. Designed for India and other emerging markets where iPhones are too expensive, Snapchat saw an immediate 6 percent increase in the number of people on low-end devices sending Snaps within the first week of upgrading to the new Android app.

Snapchat revives growth in Q1 beat with 190M users as share price spikes

Snapchat grew from 186 million daily active users in Q4 2018 to 190 million in Q1 2019, adding 1 million in North America, 1 million in Europe and 2 million in the Rest of World, where the Android app makes the biggest difference despite rolling out near the end of the quarter. It has been a long wait, as Snap first announced the Android reengineering project in November 2017.
“As of the end of Q1, our new Android application is available to everyone,” Snap CEO Evan Spiegel wrote in his prepared remarks for today’s estimate-beating earnings report. “While these early results are promising, improvements in performance and new user retention will take time to compound and meaningfully impact our top-line metrics. There are billions of Android devices in the world that now have access to an improved Snapchat experience, and we look forward to being able to grow our Snapchat community in new markets.”

Some of the growth stemmed from tweaks to Snapchat’s ruinous redesign, including better personalized ranking of Stories and Discover content, as well as new premium video Shows. Now with the Android app humming, though, we might see significant growth in the Rest of World region in Q2.
Unfortunately, since Snapchat uses bandwidth and storage-heavy video, more usage also means more Amazon AWS and Google Cloud expenditures. That’s partly why Snapchat is predicting a slight increase in adjusted EBITDA losses from $123 million in Q1 to between $125 million and $150 million in Q2. Rest of World users only earn Snap about one-third as much money as North American users, but cost nearly as much to support.
We first highlighted Snap’s neglect of the international teen Android market when Instagram Stories launched in August 2016. Spiegel and Snap were too focused on cool American teens, squandering this market that was snapped up by Facebook’s Instagram and WhatsApp. Now Snapchat will have a much harder time winning emerging markets as they’re not the first to bring Stories there. But if it can double-down on ephemeral messaging, premium video and its augmented reality platform that are leagues ahead of Facebook’s offerings, it could finally creep toward that 200 million DAU milestone.
 Come see Snap CEO Evan Spiegel speak at TechCrunch Disrupt SF on October 2nd-4th. Get your tickets here.

Snapchat fully rolls out reengineered Android app, boosting usage

Google beats expectations again with $31.15B in revenue

Alphabet, Google’s parent company, reported another pretty solid beat this afternoon for its first quarter as it more or less has continued to keep its business growing substantially — and is growing even faster than it was a year ago today.
Google said its revenue grew 26% year-over-year to $31.16 billion in the first quarter this year. In the first quarter last year, Google said its revenue had grown 22% between Q1 of 2016 and Q1 of 2017. All this is a little convoluted, but the end result is that Google is actually growing faster than it was just a year ago despite the continued trend of a decline in its cost-per-click — a rough way of saying how valuable an ad is — as more and more web browsing shifts to mobile devices. Last year, Google said it recorded $24.75 billion in the first quarter.
Once again, Alphabet’s “other bets” — its fringe projects like autonomous vehicles and balloons — showed some additional health as that revenue grew while the losses shrank. That’s a good sign as it looks to explore options beyond search, but in the end it still represents a tiny fraction of Google’s overall business. This was also the first quarter that Google is reporting its results following a settlement with Uber, where it received a slice of the company as it ended a spat between its Waymo self-driving division and Uber.
Here’s the final scorecard:
Revenue: $31.16 billion, compared to $30.36 billion Wall Street estimates and up 26% year-over-year.
Earnings: $9.93 per share adjusted, compared to $9.28 per share from Wall Street
Other Revenues: $4.35 billion, up from $3.27 billion in Q1 last year
Other Bets: $150 million, up from $132 million in Q1 2017
Other Bets losses: $571 million, down from $703 million in the first quarter last year
TAC as a % of Revenue: 24%
Effective tax rate: 11%, down from 20% in Q1 2017
In the end, it’s a beat compared to what Wall Street wanted, and it’s getting a very Google-y response. Investors were looking for earnings of $9.35 per share on $30.36 billion in revenue. Google’s stock is up around 2% in extended trading, which for Google is adding more than $10 billion in value as it races alongside Microsoft and Amazon to chase Apple as the most valuable company in the world by market cap. Google jumped as much as 5% in extended trading, though it’s flattened out
Google’s traffic acquisition cost, or TAC, appears to also remain stable as a percentage of its revenue. This is a little bit of a sticking point for observers for the company and a potential negative signal for investors as more and more web browsing shifts to mobile. It’s ticked up very slowly over the past several years, but is now sitting at around 24% of its total revenue.

Google, at its core, is an advertising company that is going to make money off its billions of users across all of its properties. But as everything goes to mobile devices, the actual value of those ads is going to drop off over time simply because mobile browsing has a different set of behaviors. Google’s business has always been to offset that cost-per-click with a growing number of impressions — and, indeed, it seems like the status quo is sticking around for this one.

While Google’s advertising business continues to chug along, that diversification of revenue streams is going to be increasingly important for the company as a hedge against any potential threats to its advertising income. Already there is some chaos when it comes to what’s happening with user data following a massive scandal where information on as many as 87 million Facebook users ended up with a political research firm, Cambridge Analytica. That backlash centered around user privacy may end up tapping Google, which dominates most of how information travels across the web with Gmail and Search among its other products.
But that still comes at a pretty significant cost. It’s made major investments into tools like Google Cloud (or GCP), but tucked into the earnings report is a line item that shows its “purchases of property and equipment” more than doubled year-over-year to around $7.3 billion, up from $2.5 billion in the first quarter this year. Of course this can encompass a ton of things, but Google still has to actually buy servers if it’s going to run a cloud platform that can compete with AWS or Microsoft’s Azure.
All that feeds into its “other income” stream, which grew from $3.2 billion in Q1 last year to $4.35 billion in the first quarter this year. Amazon’s cloud business is already more than a $10 billion business annually, and that first-mover advantage has served it well as it began a huge shift to how businesses operate on cloud servers. But it also exposed a massive business opportunity for Google, which continues to invest in that.

Google beats expectations again with $31.15B in revenue