Snap: shares take a hit after results disappoint

(CercleFinance.com) - Snap Inc.
shares plunged on Wednesday after the owner of the Snapchat app reported disappointing quarterly results and warned against continued softness in the second quarter.

Its shares collapsed 21% in early-morning trading today, reaching 11.1 dollars, continuing their slide below their IPO price of 17 dollars.

First-quarter revenue reached 231 million dollars, up 54% year-on-year, albeit 6% below consensus, caused by "weak user adds and advertiser pause following the app redesign" according to analysts at Susquehanna.

Snap said its daily active users (DAUs) rose from 166 million in Q1 2017 to 191 million in first quarter 2018, still 3 million below consensus, as the redesign was not very much appreciated by Snap's user base, Susquehanna said.

As a result, Snap's operating loss widened to 217.9 million dollars in the past quarter, up 16% from last year's loss.

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