Social media company Snap Inc (NYSE:SNAP)’s shares bombed in after-hours trading following the Snapchat developer’s second-quarter earnings print.
This is despite Snap hitting or exceeding its previously laid-out metrics.
Total revenue increased 16% year on year to $1.24 billion (against a guidance range of $1.22-$1.25 billion) and adjusted EBITDA came to $55 million (against a guidance range of $15-$45 million).
Yet Snap remains a heavy lossmaker, with net losses of $248 million penned in the quarter, a 34% improvement from last year.
In response to these results, Snap shares are forecast to open a bruising 16% lower when markets open this Friday.
Forward guidance may have failed to impress the Street.
Snap expects 441 million daily active users in the third quarter (a 9% improvement from the current-quarter’s 432 million), with a guided revenue range of $1.33 billion to $1.37 billion, implying year-over-year revenue growth of 12% to 16%.