The day has finally come. After Thursday’s closing bell, Snap, Inc. (NYSE:$SNAP) posted their quarterly results. And they were worse than expected. Snap’s quarterly results showed a steeper than expected loss as well as revenue that missed estimates. Additionally, they also added fewer users, but Wall Street saw that one coming from a mile away.

During the quarter, Snap – the maker of the disappearing messaging app Snapchat – only managed to add 7 million daily users. Shares fell drastically in after hours trade before rebounding in choppy trading following the report.

Let’s examine Snap’s quarterly results:

• Adjusted Earnings Per Share: Loss of 16 cents per share versus loss of 14 cents per share expected by Thomson Reuters

 

• Revenue: $181.7 million versus $186.2 million expected by Thomson Reuters

 

• Daily Active Users: 173 million versus 175.2 million forecasted by a StreetAccount estimate

 

• Average Revenue Per User: $1.05 versus $1.07 forecasted by FactSet

Needless to say, Snap’s quarterly results – which is it’s second-ever as a public company – came at a crucial time for the company.

The California-based company first went public in March and was well received in the beginning: Shares increased 44% on the first day of trading. However, since then, Wall Street analysts, including Morgan Stanley, have lowered the expectations. With all this pessimism surrounding the company, shares have faced a tremendous amount of pressure, declining roughly 41% over the course of the past three months.

Further, during the quarter, losses began to pile up. In the three months that ended in June, Snap reported a loss of $443.1 million, as costs increased across the board, even more so in marketing, R&D, and operations. However, thanks to more efficient infrastructure, Snap did save a bunch of money in hosting costs.

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