Snap misses across the board for Q2 earnings, stock gets whacked (SNAP)

pulse

August 10, 2017 9:23 PM

Snapchat maker Snap Inc. missed expectations for its second quarter as a public company, sending its stock diving more than 16% on Thursday.

Snapchat maker Snap Inc. missed Wall Street’s expectations for its second quarter as a public company, sending its stock diving more than 16% in after-hours trading to an all-time low.

The number of daily Snapchat users only increased by 7 million from the first quarter; analysts were expecting that number to go up by 10 million. Snap also fell short of the Street's revenue expectations. And the company's net loss ballooned to $443 million, compared to $116 million at the same time last year.

But it wasn't all bad news. One bright spot: The company did manage to grow its average revenue per user for the quarter to $1.05 from $0.50 in the year-ago period, a healthy increase of 109%. Snap executives have argued that they can meaningfully grow the business by making more money off existing users, rather than by relying on fast-paced user growth.

Here are the key numbers from Snap's Q2 earnings:

Revenue:
Earnings per share (adjusted):
Daily active users:

Even before the earnings report, Snap's stock had already fallen off a cliff since its hotly anticipated initial public offering earlier this year. Investors have worried that the app maker won't be able to grow its ad business in the face of mounting competition from Facebook.

Also weighing on the stock: Employees will also be able to sell their shares on the public market for the first time next week, presenting an ultimate test of confidence in the company.

Earnings call live blog:

4 million more daily users in North America,
25%
The average daily user of Snapchat creates more than 20 messages, or "snaps," per day
dancing hot dog
"world’s first augmented reality superstar.”
which has generated quite a few memes
Snapchat's Discover partners saw a 30% bump in viewership
250 million snaps are saved to Memories every day
"
Spiegel and his cofounder
, Bobby Murphy, will not sell shares this year.
60% of Snap ads are now delivered programmatically
Sales of Spectacles, Snap's eyeglasses with built-in cameras, fell
200 million in cash on acquisitions
"used for discovery, and not just for directions."
People under the age of 25 use Snapchat for 40 minutes on average every day
There was a cringe-worthy moment

Here are some charts that show Snapchat's daily user growth:

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