Snap Inc (NYSE:SNAP) shares tumbled almost 15% after Tuesday’s closing bell as the social media platform’s second quarter earnings disappointed investors, with key metrics falling short of expectations.
A loss per share of $0.16 was worse than the loss per share of $0.15 reported for the same period last year and earnings per share of $0.01 expected by Wall Street analysts.
The company reported a net loss of $263 million, wider than $249 million in the year-ago quarter, and adjusted EBITDA was $41 million, down from $55 million.
Revenue was up 9% year-over-year to $1.36 billion, slightly above Street estimates of $1.35 billion.
However, average revenue per user of $2.87 missed estimates of $2.90.
During Q2, monthly active users increased 7% year-over-year to 932 million while daily active users were up 9% at 469 million, slightly above estimates of 467 million.
“Our global community continued to grow in Q2, reaching 932 million monthly active users as we continued to invest in AI and augmented reality,” Snap CEO Evan Spiegel said in a statement.
“With meaningful inventory and conversions growth this quarter, including the broader rollout of Sponsored Snaps, we’re excited about the opportunity to translate improved advertiser performance into topline acceleration.”
Shares of Snap were down 14.4% at $8 post-earnings.