Snap is getting crushed after a nightmare quarter (SNAP)

pulse

May 1, 2018 9:27 PM

The market was eager to see if Snap had rebounded from a series of missteps and setbacks, including three rounds of layoffs just this year and a botched app redesign. The company's performance fell well below expectations.

Here's what analysts had expected from the Venice, CA-based Snap:

A loss of 17 cents per share
Revenue of $243.55 million

Daniel Ives, an analyst with GBH Insights, sized up the company's situation this way: "Any hopes of profitability in the near term appear to be out the window...We view 1Q as a major setback in gaining credibility with the Street."

For the same quarter last year, Snap reported a loss of 20 cents per share on revenue of $149.65 million.

Some of the improvements the company reported included a net loss $384. 2 million, which was 82% slimmer from the $2.2 billion net loss reported for the same period a year ago.

Snap's management also said that daily active users grew from 166 million in Q1 2017 to 191 million in Q1 this year, a 15% increase. But Snap only picked up 4 million new users during this quarter, less than half of the 8.9 million new users the company reported in Q4, 2017.

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