Snap posts big 1Q loss, higher revenue, misses expectations

Quarterly revenue exploded to $149.6 million in the first quarter, nearly a four-fold increase from the quarter before, but analysts were expecting revenue to reach around $158 million.

The company reported a net loss of $157 million.

Today's news from Wall Street - its first-ever earnings report as a publicly traded company - was not great for Snapchat and its fearless leader Evan Spiegel.

Part of the larger problem is that Snapchat has been trying to expand beyond its core areas. They also created more than 3 billion snaps every single day.

Snap is also pushing toward direct-response dollars with features that let users watch content or buy items.

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In an interview with CNBC, Snap's chief strategist Imran Khan said, "We made good progress this quarter improving the performance and quality of our Snapchat application, especially on Android, which has helped result in increased net user adds and engagement". To be fair, this is a significant jump compared to a year ago, by 286 percent, in fact. Just 5 million Snaps have been taken using spectacles - there are 3billion snaps on the Snapchat app daily. It defines ARPU as quarterly revenue divided by the average daily active users. About $2 billion of it was for IPO-related stock compensation costs. That Facebook is going after Snapchat is not news, but the battle has now become somewhat ugly.

Snap Inc., best known for disappearing messages even though it has evolved to become much more, had a massive loss and saw user growth continue to slow down in the first three months of the year.

The trend makes Facebook look invincible, and it makes Snap look like Twitter. Last quarter, the company lost $170 million. The company generated $0.90 with each user in Q1 of 2017.

In short, Snap's Q1 numbers fell short of analysts' expectation but were still positive. The hype around Snapchat's ability to attract teens and millennials propelled the company ahead of its IPO. The report sent share prices plunging in after-hours trading. The company has only been public for around a month, and there's still plenty of time for it to smooth things out.