Snap Inc (SNAP) Releases Earnings Results, Misses Expectations By $0.26 EPS

Snapchat users created on average more than 3 billion snaps, or pieces of short content, every day, up from 2.5 billion the previous quarter.

Pivotal Research is even more pessimistic, calling for Snap to fall all the way to $9 a share. In its first quarterly earning report after going public in March, the company saw growth slipping to its lowest in the past two years, reporting 166 million users at a growth rate of a mere 5 per cent. As of March, the company said it had about 161 million daily users.

Snapchat has seen increased competition in the past 12 months, with Facebook and Instagram both adding "Stories" - a feature nearly identical to Snapchat's own of the same name.

However by that time, Facebook's users were already 552 million or over three times the number of Snapchat. The stock was down 23 percent as the call, a first for CEO Evan Spiegel, chief strategy officer Imran Khan and CFO Drew Vollero, wrapped up Wednesday afternoon.

"Just because Yahoo has a search box doesn't mean they're Google", he said. However, its weak user growth remained consistent with expectations set by JPMorgan analysts.

The company in an official statement said, "The company brought $149.6 million in revenue in the first quarter this year".

However, that hasn't turned into too many people using them. US Bancorp DE purchased a new position in Snap during the first quarter valued at about $101,000. Facebook, for example, has been snapping up features present in Snapchat and incorporating them into its own products.

It is also registered an increase of 36 per cent on the 122 million daily users the app had this time a year ago.

Average revenue per user (ARPU) was 90 cents in the first quarter, up from 33 cents the same quarter a year earlier, but below the $1.05 per user in the fourth quarter of 2016.

The company recently introduced a new feature, New World Lenses, that lets users add 3-D augmented-reality objects, often referred to as "stickers", to their Snapchat posts. Snap has a one year low of $17.59 and a one year high of $29.44.

They noted a "surprising element of seasonality" in the business, while lamenting the risk that Snap wouldn't grow by as much as the firm previously expected.

Snap Inc CFO Drew Vollero said the sale of Spectacles were the majority of the company's $8.3 million "other" revenue in Q1. Facebook is a social media behemoth compared to Snapchat and its numbers prove the same. Which, Snapchat earnings showed that the company has failed to do.

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