Investing.com – Shares of Snap Inc (NYSE:SNAP) plunged 20% in after-hours trading on Wednesday, after the company’s debut public earnings report fell short of expectations.
Snap Inc, parent company of popular social media app Snapchat, posted revenue and user growth that missed estimates.
Snap reported an earnings loss of $2.31 per share on $150 million in revenue against analysts’ expectations of an earnings loss of $0.19 per share on $158 million in revenue.
An earnings loss of $2.31 per share equates to roughly a $2.2 billion loss for the quarter, as the company revealed that stock-based compensation soared to $2.0 billion.
Meanwhile, Snap's global daily active users grew to 166 million for the quarter, which fell short of expectations of an increase to 167.3 million.
A large chuck of Snap’s revenue comes from advertisers seeking to leverage the social media company’s popularity with Millennials.
In March, digital marketing firm eMarket said Snap Inc’s Snapchat ad revenue will be $30 million lighter in 2017 due to higher than expected revenue sharing with its advertising partners.
Shares of snap traded at $18.35, down 20% in after-hours trading.