Snapchat has seen its shares tumble after the social network reported disappointing growth in the first three months of the year. Snap Inc, the owner of Snapchat, saw a n djusted loss of $188.2m, which was about $10m worse than analysts had expected, while the net loss soared to $2.2bn from $104.6m due to costs […]
Snapchat has seen its shares tumble after the social network reported disappointing growth in the first three months of the year.
Snap Inc, the owner of Snapchat, saw a n djusted loss of $188.2m, which was about $10m worse than analysts had expected, while the net loss soared to $2.2bn from $104.6m due to costs associated with the IPO earlier this year.
Revenue rose 286% for the quarter to almost $150m, but was also short of forecasts by about $9m.
In its first results since floating, Snap said the number of daily active users rose just 5% to 166 million compared with the last three months of 2016.
That was two million fewer than expected, but 36% higher than the same period last year.
The news sent shares tumbling more than 20% in after-hours trading in New York.
Year-on-year growth in users was 36%, slowing from 48% in the fourth quarter and 63% in the third quarter.
Revenues were up nearly four-fold compared to the same period last year at $149.6m but lower than the $158m expected on average by analysts.
Measured per user, revenues were three times higher than in the same quarter last year but 14% lower compared to the previous three months.
The disappearing messaging app, popular with teenagers, attracted huge interest when it went public in New York earlier this year – sending its shares 44% higher in its first day of trading.
But Facebook – which once offered $3bn to buy the business – has upped the ante by offering features similar to Snapchat on its platforms including Instagram and WhatsApp.
