- Snapchat shares open lower by more than 10%
- Weak revenue and user growth in Q3
- Stock now back near its lowest level ever
The majority of large US companies have now reported their third results with most announcing impressive results. Snapchat however is an exception, with the social media firm reporting a disappointing set of figures after the market closed last night.
Snap (SNAP.US on xStation) has continued its losing streak with the Q3 2017 results seeing it miss expectations and add just 4.5M users. Revenues of $207.9M was below the street forecasts for $237M and even though earnings per share (EPS) saw a small beat ($-0.14 vs $-0.15 expected) the overall feeling is clearly one of disappointment.
Given that the firm continues to run a loss, investors are clearly hopeful that business growth will be strong and eventually lead to the company turning a profit. The key metric with respect to growth is user numbers and a 2.9% Q/Q rise is the slowest ever rate of increases with Q2 seeing +4.2% and Q1 +5%. There are now 178M daily users compared to analysts forecasts for 180M.
Snapchat shares have opened sharply lower with the market falling back below the 14 handle after a disappointing set of results. Source: xStation
The firm only made its IPO earlier in 2017 with one of the most hyped offerings in recent years. The early enthusiasm appears to have now well and truly faded and the stock has fallen back down towards its lowest ever levels after hitting a high of 29.44 in the first few days of trading.