Tech: LIVE: Snap misses across the board for Q2 earnings (SNAP)
Snapchat maker Snap Inc. is set to report its second quarter earnings after markets close on Thursday.
Snapchat maker Snap Inc. missed Wall Street’s expectations for its second quarter as a public company, sending its stock diving roughly 5% in after-hours trading.
The company did manage to grow its average revenue per user to $1.05 from $0.50 in the year-ago period, an increase of 109%. Snap executives have argued that they can meaningfully grow the business by making more money off existing users, rather than rely on exponential user growth.
81% of Snap's second-quarter revenue came from North America, a strong indicator that the app is focused on monetizing users in the world's largest and most valuable ad market.
Here are the key numbers from Snap's Q2 earnings:
- Revenue: $181.7 million vs. $189 million expected.
- Earnings (adjusted): Net loss of $0.16 vs. $0.15 expected
- Daily active users: 173 million, down from 175 million expected.
Snap's stock has fallen off a cliff since its hotly anticipated initial public offering earlier this year. Investors are worried the app maker won't be able to grow its ad business in the face of mounting competition from Facebook.
Also weighing on the stock: Employees will also be able to sell their shares on the public market for the first time next week, presenting an ultimate test of confidence in the company.
Business Insider will be covering Snap's second quarter results live. Stay tuned for more.
This story is developing. Check back for updates.