Crowd Mobile has joined up with Snapchat – but neither stock is doing very well
Diggy Simmons attends Teen Vogue's Body Party Presented By Snapchat. Pic: Cindy Ord
Listed “global mobile entertainment and digital media company” Crowd Mobile has become a gold-plated Snapchat affiliate after working with the social networks’s owner Snap Inc for several years.
Crowd Mobile (ASX:CM8) told investors this morning it had been added as a certified partner by the $10 billion social media giant, after several years of “working closely with Snap for its own Q&A Division products”.
But investors didn’t seem too impressed — perhaps because New York-listed Snap’s own shares have almost halved in the past three months.
Crowd Mobile was steady at 4.3c this morning — down from a 12-month high of 23.5c this time last year.
Crowd — co-founded by a 20-year veteran of Australia’s tech investment scene, Domenic Carosa — offers “influencer marketing” through its Crowd Media division.
It allows clients to pay “social influencers” — bloggers or anyone with a big social media following — to market their products.
Crowd also offers a Q&A service for connecting “those seeking answers with qualified experts” and mobile content.
The company says it was chosen to “create unique brand experiences” for Snapchat, which has around 188 million daily users. It will leverage Snapchat across e-commerce, direct response and data-driven advertising for external clients.
“This partnership further validates Crowd to potential clients and will provide us with better access to Snap’s technology and limited beta test programs,” Mr Carosa said in a statement.
“In addition it will allow us to have quarterly face-to-face workshops with Snap which will enable us to improve our offering and ultimate generate increased revenue for our products and agency partners.”
Speaking of revenue, Crowd Mobile’s dropped 12 per cent to $38.6 million for the 2018 financial year, while its full-year loss worsened an eye-watering 30,349 per cent — from $191k profit to a $28.3 million loss.
Crowd Mobile shares were flat on the news this morning, but have been trending downwards over the past year from a high of 23.5c.