Snap Shares Plummet After It Misses Investor Q2 Earnings Expectations

Snap Inc
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Snap’s efforts to attract users, and advertisers, are less effective than investors imagined. Its just-released Q2 report showed it fell short of almost every benchmark Wall Street set for the company sending shares down more than 16% in post market trading.

The company went public in March at $17 a share, and now trades for less than $12.

Snap reported a Q2 net loss of $443.1 million, from a $115.9 million loss in the period last year, on revenues of $181.7 million, up 153%. Analysts expected revenues to hit $186.2 million.

The 16 cents a share adjusted loss compares to expectations for a 15 cent loss.

Just as important: Daily active users, at 173 million, were up 7.3 million from Q1. Investors thought they’s see a 10 million increase. Average revenue per user at $1.05 also was below the $1.08 that Wall Street anticipated.

Investors have been losing faith in the company behind Snapchat, especially as Facebook’s Instagram began to offer many similar ways for smartphone users to alter pictures.

This article was printed from https://deadline.com/2017/08/snap-shares-fall-after-misses-investor-q2-earnings-expectations-1202146635/