Snap Inc (NYSE:SNAP) had a quarter to forget according to its latest report, which revealed that earnings met expectations, but revenue fell below analysts’ projections.
The tech company announced that its earnings tallied up to a loss of 17 cents per share for its first quarter of fiscal 2018, which was in line with the 17 cents per share of losses that analysts polled by Thomson Reuters were calling for.
Snap’s revenue left something to be desired as the social media app maker reported sales of $230.7 million, below the $244.5 million that the Wall Street consensus estimate called for, according to data compiled by Thomson Reuters. The company’s daily active user base was also below the mark at 191 million as analysts were calling for 194.2 million in this category, according to data compiled by FactSet.
The company has been struggling to recover from its controversial Snapchat redesign, which has pushed away some of its core users. “As we have mentioned on our past two earnings calls, a change this big to existing behavior comes with some disruption, especially given the high frequency of daily engagement of our community,” CEO Evan Spiegel said.
He added that Snap’s March daily active users fell below the company’s quarterly average, although these results were still above its fourth-quarter figures.
SNAP stock fell a whopping 15.9% after the bell on the company’s revenue miss and continuing loss.
