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Snap Stock Plummets on Q2 Earnings and Revenue Miss

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Snap Inc. (SNAP - Free Report) just released its second-quarter financial results, posting a loss of 36 cents per share and revenues of $181 million. Currently, SNAP is a Zacks Rank #4 (Sell) and is down 9.95% to $12.40 per share in trading shortly after its earnings report was released.

Snap:

Missed earnings estimates. The company posted a loss of 36 cents per share, missing the Zacks Consensus Estimate calling for a loss of 29 cents per share.

Missed revenue estimates. The company saw revenue figures of $181.67 million, missing our consensus estimate of $186.91 million.

Daily active users were up 21% year-over-year to 173 million. Snap added about 7.3 million DAUs in the second quarter—a 4% sequential gain. Average revenue per user was $1.05, which represents growth of 109% year-over-year and 16% quarter-over-quarter.

Hosting costs per DAU were $0.61, up from $0.55 in the prior-year quarter and $0.60 in the first quarter of 2017.

Total costs and expenses climbed to $630.7 million, up significantly from $187.7 million in the year-ago quarter.

Here’s a graph that looks at Snap’s price performance since its IPO:

Snap Inc. provides technology and social media services. The Company's principal product, Snapchat, is a camera application that helps people to communicate through short videos and images.

Check back later for our full analysis on Snap’s earnings report!

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