Snap Inc (NYSE:SNAP) posted its third-quarter results after the bell Tuesday.
The maker of Snapchat posted a net loss of $443.2 million for the period, which came in at a 14-cent loss. Analysts were calling for a loss of 15 cents per share over the three months.
Snap’s revenue was well below expectations at $207.9 million, missing the consensus estimate of $236.9 million by $29 million. Its daily active users was also disappointing at 178 million versus the Wall Street outlook of 181.8 million.
The average revenue per user (ARPU) came in at $1.17, while analysts were calling for ARPU of $1.30. One of Snap’s biggest failures so far has been its Spectacles, which marked its first foray into hardware.
The devices did not sell well, causing the social media app to write down $39.9 million as a result of losses from the product. The charges were caused by an excess of inventory and inventory purchase commitment cancellations.
Snap only added 4.5 million new users, which CEO Evan Spiegel agreed were underwhelming. The company has faced its fair share of struggles since going public, one of which is related to competition adding products that are very similar to what Snapchat offers.
Instagram is the biggest offender as the company has added a feature that mimics Snapchat’s Stories functionality, allowing users to upload 10 seconds of their day at a time, building a story as you add more clips over the course of a day.
SNAP shares took a nosedive after hours, falling more than 16%.
