Snap shares whacked after earnings miss forecast

Snap shares plunge 20pc as quarterly revenue misses estimates

According to the company, revenue in the quarter ended March 31 was $149.6 million, which was below analysts' expectation of $158 million.

On Tuesday, the company posted a $2.2 billion loss in the first quarter, much of which was tied to compensation following the companys IPO in March. Facebook-owned Instagram launched its Stories last August and has amassed more than 200 million daily active users as of last month - 20 percent more than Snapchat.

Snap defines a daily active user (DAU) as a registered Snapchat user who opens the app at least once during a defined 24-hour period.

Analysts from J.P. Morgan anticipated Snap's DAUs to increase to 169 million by the end of the first quarter. Its loss in Q1 2016 was just $104 million.

Kerr said in an interview earlier this year.

Snap's year-over-year growth rate fell to 36 percent year-over-year from 48 percent in the fourth quarter last year, TechCrunch reported on Thursday. Its nearest competitor Facebook-owned Instagram now has 700 million users, with its "Stories" feature having 200 million daily active users. But in the rest of the world, Snap only added a million daily users, reaching 40 million daily active users. Its user numbers also came in light.

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All that copying appears to be paying off for Facebook - and potentially hurting Snapchat.

However, other analysts were less pessimistic, noting the potential for future growth despite the missed targets.

Snapchat, however, has already been more than eclipsed by Instagram Stories.

Spiegel focused on highlighting the company's progress on Android development on the earnings call. The earnings report was announced the day after several new features were added to the Snapchat app.

When pressed on the call about competing with Facebook, Spiegel said he expects that "everyone is going to develop a camera strategy".

Snap's first set of results had been nervously awaited for any signs that Facebook's attack had damaged it, and traders responded by sending shares down by over 24pc, hovering just above the $17 the company floated at.

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