Snap Craters on Huge Earnings Miss
Snap Inc. (NYSE: SNAP) reported its first-quarter financial results after the markets closed on Wednesday. The company said that it had a net loss of $2.31 per share and $149.6 million in revenue, versus consensus estimates from Thomson Reuters that…
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[cnxvideo id=”655235″ placement=”ros”]Snap Inc. (NYSE: SNAP) reported first-quarter financial results after markets closed Wednesday. The company said that it had a net loss of $2.31 per share and $149.6 million in revenue versus consensus estimates from Thomson Reuters that called for a net loss of $0.19 per share and $157.98 million in revenue. The same period from last year had a net loss of $0.14 per share and $38.80 million in revenue in revenue.
During this quarter, daily active users (DAU) grew to 166 million from 122 million in the first quarter of last year, an increase of 36%. DAUs increased 5% quarter-over-quarter, from 158 million in Q4 2016.
Average revenue per user (ARPU) totaled $0.90 in this quarter, an increase of 181% year over year, while ARPU decreased 14% quarter-over-quarter.
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At the same time, hosting costs per DAU were $0.60, compared with $0.52 in the first quarter of 2016 and $0.72 in the fourth quarter of 2016.
On the books, cash, cash equivalents, and marketable securities totaled $3.24 billion at the end of the quarter, versus $987.4 million at the end of December 2016.
Shares of Snap closed Wednesday down 1.5% at $22.96, with a consensus analyst price target of $23.43 and a 52-week trading range of $18.90 to $29.44. Following the release of the earnings report, the stock was initially down 18% at $18.80 in the after-hours trading session.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
