If you didn’t know, Snap Inc. is the company responsible with running Snapchat. Apparently, earlier this year they were hacked and in this process some of its incredibly wanted source code was released to the public. Motherboard let us know that this source code was for Snapchat’s iOS.
How did it happen?
Before the hacking happened, Snap Inc. archived its source code on GitHub, a code repository site. After the event occurred, Snap asked GitHub for its code back and delivered a copyright act request as well.
A Snap representative spoke about what happened in May. Apparently, an update to the iOS caused the leakage of some of the source code (a small amount, they say) and they had to act swiftly to identify and rectify the mistake. They soon found out that their code is posted online, although it was soon deleted. They feel that their app and the community weren’t affected at all by this event.
How about the finance?
At first Snap observed a loss in daily active users, a first for this company. However, its shared flew by Wall Street estimates, rising by 6%. Still, investors became cautious and Snap lost shares by 3.4%.
Regarding the per share basis, Snap reported a loss of $0.14 on revenue of $262min. Wall Street projected that these numbers would be $0.17 on revenue of $251min. The daily active users fall was also mispronounced by Wall Street, Snap reporting a fall from 191min to 188min.
This user decline raised concerns about Snap’s ability to compete in a market saturated with social media outlets. As to why this fall happened, there could be multiple reasons. One of them would be the redesign that happened earlier this year, which resulted in some people becoming less able to navigate the site.
Hunter Texidor was born and raised in Toronto. He has written for Billboard, The Prague Post and Passport Magazine. In regards to academics, Sage earn his BBA from Mcmaster in Hamilton. Hunter covers business and economy stories here at Billionaire 365.