$SNAP Shat The Shower After Hours – Hits All Time Low On Slow Growth

zeropointnow Thu Aug 10, 2017 5:17pm EST 7 Comments

Poor Snap, Inc. ($SNAP)

Revenue: $181.7 million vs. $189 million expected.
Earnings per share (adjusted): Net loss of $0.16 vs. $0.15 expected
Daily active users: 173 million, down from 175 million expected.

Looks like competition from Facebook is cramping their style, as the company dove to new lows after announcing a huge miss on growth vs. estimates. The Los Angeles photo and video sharing company has fallen a cliff in recent weeks after the expiration of the employee IPO lockup period, as well as a disappointing rejection from the S&P 500 index due to new rules which exclude companies with multiple share classes.

Shares hit as low as $11.31 after hours, a 33% decline from their March 1 IPO, and are currently trading at $11.50 / sh.

On the bright side, revenue per user jumped to $1.05 vs. $0.50 year over year, an increase of 109%.

Per Bloomberg:

Since its public debut in March, the maker of the Snapchat mobile application for sending disappearing photo and video has said its app would become more popular as the company innovates and adds features. In the second quarter, Snap added a maps function for users to see where friends are, as well as a search section. Yet rival Facebook has been successfully copying some of Snap’s key features on its larger social-media properties, drawing users that may otherwise have downloaded Snapchat — but now see less use for the standalone app.

Facebook is also exerting pressure in the mobile advertising market. Snap said quarterly revenue was $181.7 million, missing the $185.8 average estimate of analysts surveyed by Bloomberg. While Snap has been updating its offerings to give advertisers more sophisticated options, the company has been struggling to prove it can secure its position in a market dominated by Facebook and Alphabet’s Google Inc.

What’s next?

Reactions

SNAP's revenue grew by 153%
SNAP's loss grew by 282%

— zerohedge (@zerohedge) August 10, 2017

People buying up $SNAP before earnings be like: pic.twitter.com/Eg7gSD4Cyr

— José Antonio Márquez (@joseeight) August 9, 2017

$SNAP falling like a rock, down 12% after hours. Here's your earnings tl;dr: pic.twitter.com/9Uu2IDackr

— Alex Kantrowitz (@Kantrowitz) August 10, 2017