Snap Inc (NYSE:SNAP)’s second quarter was a bad one in nearly every metric.
Year on year, the social media app's top-line revenues fell 4% to US$1.07bn, operating losses extended one percent to US$404mln, and underlying earnings flipped from US$7mln in the green to a bruising US$38.5mln in losses.
Daily active users did increase by 14% to 397mln, but that goes to show that per-user advertising income has drastically declined.
In tandem with these poor results, Snapchat has given a dour financial forecast for the coming quarter.
Estimated third-quarter revenue guidance is US$1.07bn to US$1.13mln, implying negative 5% to flat year-to-year growth.
Adjusted EBITDA losses are expected between negative US$50mln to negative US$100mln, with estimated infrastructure costs per daily active user at $0.79 to $0.84.
In response to these results, Snapchat shares have plummeted in pre-market US trades.
Snapchat is expected to open over 17% lower when the market opens.