Snapchat (NYSE:SNAP) released its first quarter financial results on Tuesday after the market had closed for the day.
Revenue of the social media company went up 54% year-over-year to $230.7 million as a result of its Snap Ads, but fell $55 million from the fourth quarter of 2017.
The company attributes this loss to seasonality and the redesign of Snapchat’s layout.
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Daily Active Users (DAUs) grew 15% year-over-year, from 166 million in the first quarter of 2017 to 191 million and rose 4% quarter-after-quarter from 187 million in the fourth quarter of 2017.
Although there were positive results in the company’s report, Snapchat’s Adjusted EBITDA loss was also approximately $217.9 million, up 16% year-over-year.
Snapchat, unaudited, capital expenditures increase from $21 million of 2017’s fourth quarter to $36 million due to the company’s recent move to Santa Monica, California.
Although expenditures rose by $15 million, Snapchat has stated that this is below that of their industry peers.
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Shares of Snapchat have also recently been taking a tumble and continued to fall on Tuesday before the company released their quarterly results.
After the announcement, the company’s shares continued to fall from its closing value of $14.13 to $11.87 within 30 minutes of the release.
Snapchat has released a new feature to its app that they are calling Snappables, which are lenses that will allow users to play augmented reality (AR) games. The new feature can be defined as a more interactive version of the company’s typical face filters.
Snapchat users can interact with the AR games through facial expressions, touch, and motion, but will also be able to add friends to the games to play along or compete against.
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