These guys just lost more than $1 billion each

These guys just lost more than $1 billion each

Snap reported that first-quarter revenue was almost $150 million, up 286 percent from the same period a year ago when the company's moneymaking efforts were much smaller and it brought in just under $39 million in revenue.

Shares of Twitter Inc, which competes with Snap and had 328 million average monthly active users in the latest quarter, had also tumbled 24 percent after its first quarterly report. But don't get it twisted, most of that loss was due to $US2 ($3) billion the company had to pay out in stock-based compensation expenses. The business had revenue of $149.60 million for the quarter, compared to analyst estimates of $158.32 million.

According to its pre-IPO filing with the U.S. Securities and Exchange Commission, Snap reported 161 million daily average users by the end of 2016.

Snap shares closed the day down 1.5 percent, or 36 cents, to $22.96.

Snap defines a daily active user (DAU) as a registered Snapchat user who opens the app at least once during a defined 24-hour period.

The stock is down 20% Thursday afternoon, to $18.29, hovering just above the company's March IPO price of $17.

Spiegel, asked if he feared the company would be crushed by Facebook, said he remained committed to a strategy "to deliver value through creativity". Worth roughly $5 billion heading into the earnings release, according to wealth rankings compiled by Bloomberg, Spiegel is out about $1 billion following the stock decline.

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Making a comparison to the search industry, Spiegel added: "Just because Yahoo has a search box doesn't mean they're Google". Snap Inc., the company behind Snapchat, meanwhile, is intent on forging ahead against its much bigger rival, courting older users, keeping young ones and along with them, advertisers.

The company reported a $US2.2 billion loss (compared to its loss of "only" $US515 million for the whole of last year) on revenue of $US149 million.

Analysts say Snap will have to keep doing what it did today on the eve of is conference: introducing new features that make the platform attractive to its user base, so it continues to grow. That slowdown coincided with Facebook-owned Instagram launching a Snapchat copycat feature.

Snapchat's growth was also faster than Facebook.

"They need to acquire the next Snapchat - companies that are doing one thing right", Britton said.

Facebook has also added Snapchat-style "Stories" and camera special effects to all its core social apps: Facebook, Messenger, WhatsApp and Instagram.