Startups

Investors Whack Snap For Revenue Miss And Lower-Than-Expected DAU Growth, Shares Down 18% After-Hours [Update: 25%]

Update: Shares of Snap are now off 25 percent in after-hours trading.

Snap reported its first quarter financial performance today, and investors instantly bid its shares down sharply.

In rapid fashion, here’s what Snap reported today, compared to what the market was expecting:

  • Analysts had expected Snap to report Q1 revenue of $157.98 million. Snap reported $149.65 million in Q1 revenue.
  • Analysts had expected Snap to lose $1.92 per share on a GAAP basis. The company instead lost $2.31 per share, accounting for all costs.
  • The company’s new daily active user (DAU) count was 166 million. Expectations had that number at 168 million.

Snap’s quarter is, therefore, a triple miss: Top line, bottom line, and future lines (DAUs).

Shares in the social company are down under $19 per share. The company went public at $17 per share, opened at $24, and traded as high as $29.44. The firm has given back nearly all its post-IPO gains.

Analysts expect the company to lose $0.13 per share in the second quarter (adjusted, presumably), against revenue of $204.1 million. If those numbers persist after this quarter’s messy miss remains to be seen.

Not good. Not good at all, Snap.

The company has lots of cash, including $1.43 billion in “Cash and cash equivalents” and $1.82 billion in “Marketable securities.” So Snap can keep on doing whatever it wants for a very long time. But today, for some investors, is their exit point.

We’ll update this post later after some more after-hours trading has been processed and we have a better idea concerning where the camera company may open tomorrow.