Snap had a highly celebrated IPO in March, but soon after saw its stock fluctuate as analysts questioned Snap’s high valuation. Now the firm has first-ever quarterly earnings report, and the numbers did not make investors happy.
Snap reported $149.65 million in revenue for its Q1 of 2017 Wednesday, compared to just $38.8 million for the same quarter last year. The company had a net loss of $2.2 billion, compared to $104.58 million for Q1 of 2016. However, much of that was due to stock-based compensation, with $750 million alone going to CEO Evan Spiegel. The operating expenses for the quarter were $196 million.
The street expected revenue to come in at $158 million. Shares of Snap were down as much as 23% in after-hours trading.
On top of the balance sheet, Snap had slower-than-expected user growth numbers. Snapchat’s daily active users grew to 166 million for the quarter. That’s a 36% year-over-year increase, but only a little better than what Snapchat did at the end of last year.
