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In its second-ever earnings report, Snapchat’s parent company disclosed revenue of $181.7 million during the second quarter and a loss of 36 cents per share.
The company did not hit Wall Street’s benchmarks, sending the stock down as much as 10 percent during afterhours trading on the NYSE.
Analysts were expecting Snap to report a loss of 30 cents per share with revenue of $186.8 million.
The company’s losses included $2.2 billion in stock-based compensation related to its March IPO.
Snap also reported 173 million daily active users during the second quarter. While that’s a gain of 21 percent year-over-year, it represents growth of 4 percent (or 7 million new users) from the previous quarter, down from growth of nearly 24 percent in the second quarter of 2014. It’s a continuation of a trend in slowing user growth for Snap over the last year, spurred on in part by the introduction of similar features at Facebook-owned Instagram.
Although much of Snap’s news was dreary, it did report some highlights, many of which came from its content and product efforts. The series Phone Swap, for example, has been averaging 10 million views per episode and is being adapted for television. Meanwhile, the dancing hotdog icon that Snapchat recently introduced has been viewed 1.5 billion times.
Snapchat also recently introduced a new product called Maps, where people can see stories happening at locations around the world. CEO Evan Spiegel said during the company’s earnings call that Maps has caused an uptick in submissions to Snapchat’s public “Our Story” feature.
Snap’s stock price has been significantly depressed since it reported first-quarter earnings in May, its first such disclosure since going public. Shares dropped below their IPO price of $17 for the first time on July 10, closing at $16.99. Shares closed Thursday up nearly 1 percent to $13.67. That represents a decline of nearly 50 percent from an all-time high of $27.09 on March 3, Snap’s second day of trading.
The stock declines came in part because Snap’s lockup period ended on July 31. Spiegel said during the call that he and co-founder Bobby Murphy would not sell shares this year.
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