Here’s What You Should Know About Snap’s Quarterly Results

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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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About the author: Caroline Harris is a third-year student at Capilano University in North Vancouver, Canada. Having already completed an Associates Degree in Psychology, Caroline is now finishing her Bachelor's degree in Communications. In preparation for working in the advertisement sector, Caroline is writing financial content and analysis. On a daily basis, Caroline works on articles regarding the following topics: finance, cryptocurrency, technology, and politics.