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Snap is getting clobbered after blaming its app redesign for a big revenue miss

May 2, 2018, 02:09 IST

Markets Insider

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  • Snap reported disappointing earnings for the first-quarter.
  • The stock is getting hammered in post-market trading.
  • Snap said its drop in revenue is attributable to seasonality and the app redesign.

Snap shares are down more than 16% in post-market trading after a big earnings miss.

Snap reported first-quarter earnings after the closing bell Wednesday, and investors don't like what they've seen.

Snap reported revenue of $230.7 million, missing Wall Street estimates of $244.93 million. Earnings per share came in at $-0.30, in line with what analysts had expected. Snap attributed the decline in revenue to seasonality and the app redesign.

"Revenue was $230.7 million in Q1 2018, up 54% year-over-year driven by growth in Snap Ads, and down 19% sequentially, primarily due to seasonality and our redesign," Snap's earnings release said.

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Daily active users grew to 191 million, a 15% year-over-year increase.

Snap shares are now down over 20% on the year.

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