Snap Posts Big 1Q Loss, Higher Revenue, Misses Expectations

Snap, 1Q Loss, Revenue, Expectations

Snap, the company behind the Snapchat app popular with young people, says revenue grew sharply, but it had a large net loss related to its initial public offering of stock.

The owner of Snapchat reports a net loss of $2.2 billion in the January-March period. About $2 billion of it was for IPO-related stock compensation costs. A year earlier, before going public, it lost $38.8 million. Snap lost $2.31 per share in the first quarter, compared with 14 cents a year ago.

Snap’s stock plunged in after-hours trading because the results missed Wall Street’s expectations. Shortly after 6:00 p.m. ET, the shares had lost $5.33, or 23.2 percent, to $17.65.

Analysts polled by FactSet were expecting a loss of $1.92 per share.

Revenue nearly quadrupled to $149.6 million from $38.3 million, but it’s less than the $158.3 million that analysts were expecting.