Snap posts big 1Q loss, higher revenue, misses expectations

While $150 million in revenue is almost quadruple the $38.6 million the company brought in during the year-ago quarter, it marks a quarter-on-quarter decline of about $16 million. DAUs also gained 5% on a sequential basis from 158 million in Q4 2016.

Part of the larger problem is that Snapchat has been trying to expand beyond its core areas.

Tech gurus asserted that it is due to the slow user growth.

On Wednesday, the parent of the messaging app Snapchat reported earnings that missed Wall Street expectations in nearly every regard.

During a conference call to discuss Snap’s earnings, CEO Evan Spiegel declined to speak about how many users Snapchat added in the quarter, instead focusing on daily engagement with viewers as a way to drive advertising.

Facebook recently announced Instagram Stories has 200 million daily active users.

Also interesting: Snap’s CFO Drew Vollero said that the company generated $8.3 million of “other” revenue during the quarter, which was primarily driven by sales of the company’s Spectacles glasses.

Snap reported a loss of $US2 ($3).3 ($3) billion for the quarter, which is a HUGE amount of money. Snapchat brought in $149.6 million from January to March.

Snap’s IPO in March.

Facebook eventually recovered; Twitter is still fighting to refute the Wall Street narrative.

Snapchat has come under intense pressure from Facebook in recent months, with the social media giant adding several Snapchat-like features to its own network, which includes Messenger, Instagram and WhatsApp.

Meanwhile, average revenue per user reached 90 cents. Well, this is up from $0.32 during Q1 of 2016. Year-over-year, Snap’s growth rate has fallen 36 percent.

Snap was flying high after completing a successful IPO earlier this year. Which, Snapchat earnings showed that the company has failed to do.

Stocks plummeted by as much as 25 per cent in after-hours trading, with prices falling below $17.5 per share late last night. The company’s shares fell more than 20% in after-hours trading in NY.

The key will be how Snap recovers going forward.

The vague response did little to ease Snap’s nosediving stock.

In an interesting departure from the usual practice with earnings releases, Snap management offered no commentary about the quarter.