"(NYSE:SNAP) Posts Earnings Results, Beats Expectations By $0.13 EPS" was originally posted by Sports Perspectives and is owned by of Sports Perspectives.
The prepared meal company Blue Apron, which started trading in June, has also lost much of its value.
As it turns out, the doubters had good reason to be concerned.
Mr Spiegel said the company was making "a lot of progress".
Other young technology companies also failed to live up to Wall Street's hype in recent years. Yet, analysts said the tie-up is less about awesome content for Snap and more about TV networks trying to keep up with increasingly scattered audiences.
Snap reported a net loss of 16 cents per quarter on revenue of $181.7 million. Analysts expected revenue to clock in at $186 million. It also spent $255 million on research and development in the last quarter, compared to $36 million in the same period previous year. Equities analysts expect that Snap Inc. will post ($0.56) earnings per share for the current fiscal year. That headwind was evaded this time around, with the top line being another record-breaker for the company. But it's still spending almost $3.50 for every revenue of dollar is brings in.
He said this "great progress" includes more frequent visits by users who spend more time and create more snaps than ever before - to the tune of 20 snaps per day from each DAU. While any rise is good, the 173 million total users still doesn't surpassed the 250 million daily active users on Instagram Stories, which celebrated its first birthday last Wednesday. That's a weaker growth pace than seen in the first quarter, and still unsatisfactory to investors.
Snap has suffered from falling stock prices since floating on the United States share market earlier this year.
It signals that even as Snapchat plays down user growth, having a strong and broad user base can be crucial to success.
This was modestly evident prior to the March IPO, based on data found in the prospectus.
Earlier, Blue Apron lost almost a fifth of its value after the meal-kit delivery company's first quarterly results following its June IPO also missed estimates and compounded worries that Amazon.com will eat its lunch.
Market watchers had expected the ranks of users to grow to 175 million, with Snap missing the mark. For Snapchat, such growth is slowing.
It shouldn't come as a complete surprise, however.
One concrete metric announced was that Snap generated $5.4 million in "Other" revenue, which would equate to around 41,500 pairs of its Spectacles camera sunglasses at a $130 price point.