Snap reported quarterly financial results for its first time as a public company on Wednesday, posting revenue that missed estimates and slower-than-expected user growth.
Shares plummeted more than 25 percent in after-hours trading. The company spent $2.0 billion on stock-based compensation expenses after its initial public offering, widening net losses for the quarter to $2.2 billion.
CEO Evan Spiegel got a $750 million bonus for taking Snap public. He told analysts on a conference call that the company was focused on improving quality for users during the first quarter, especially for those with Android mobile phones.
Despite the steep loss during the quarter, Snap is “still in investment mode,” the company’s chief financial officer, Drew Vollero, said on a conference call with analysts.
- Revenue: $150 million reported vs. $158 million expected by a Thomson Reuters consensus estimate.
- Global DAUs: 166 million reported vs. 167.3 million expected by StreetAccount.
- ARPU: 90 cents reported vs. 90 cents per share expected by StreetAccount.
- Loss of $2.31 a share including compensation expenses.
- Analysts at Thomson Reuters estimate an adjusted loss of 20 cents per share, wider than the 19 cents expected.
That’s compared with revenue of $38.8 million in the year-ago period.
As the company behind the viral ephemeral messaging app and Spectacles glasses, Snap’s IPO was the biggest technology offering since Alibaba.
And it’s growing at an extraordinary rate: Revenue rose 286 percent year over year in the first quarter. Daily active users rose 36 percent from the year-ago period, and average revenue per user grew 181 percent.
More than 3 billion Snaps were made daily in the first quarter, the company said, up from 2.5 billion in the third…