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Snap Shares Plummet After Weak Earnings, User Growth Misses Estimates

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Snap Inc. (SNAP - Free Report) just released its latest quarterly financial results, posting a loss per share of 17 cents and revenues of $230.7 million.

Currently, SNAP is a Zacks Rank #3 (Hold), but that could change based on today’s results. Estimates have increased by two cents for the current year over the last two months, and the Zacks Consensus sits at a loss of 53 cents per share.

Shares of the social media company have fallen over 42% in the last year and closed the trading day down over 1.4%. The stock is down in the double digits in after-hours trading shortly after the earnings report was released.

Snap:

Matched earnings estimates. The company reported a loss per share of 17 cents, coming in-line with the Zacks Consensus Estimate of a loss of 17 cents per share.

Missed revenue estimates. The company saw revenues of $230.7 million, lagging behind our consensus estimate of $246.1 million but growing 54% year-over-year thanks to growth in Snap Ads. However, revenues declined 19% on a sequential basis due to “seasonality and [its] redesign.”

Additionally, average revenue per user (ARPU) was $1.21, up 34% from the prior-year quarter but down 21% sequentially.

Daily active users (DAUs) grew to 191 million in Q1, an increase of 15% year-over-year and 2% quarter-over-quarter.

Here’s a graph that looks at Snap’s recent earnings performance:

Snap Inc. Price, Consensus and EPS Surprise

Snap Inc. Price, Consensus and EPS Surprise | Snap Inc. Quote

Snap provides technology and social media services. Its principal product is Snapchat, a camera smartphone application that helps people to communicate through short videos and images. Snap is headquartered in Venice, California.

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