Snap Inc (NYSE:SNAP) late Thursday posted disappointing second quarter earnings results, as both its EPS and revenues came in below expectations.
The Venice, CA-based camera-based social networking app maker reported Q2 EPS of ($0.16), $0.01 worse than the analyst estimate of ($0.15). Revenues for the quarter came in at $181.67 million, also below Wall Street’s view of $186.22 million.
Daily active users (DAUs) jumped 21% to 173 million in Q2 2017, up from 143 million in the year-ago period. That’s lower than the 175 million DAUs that analysts were looking for. DAUs also gained 4% sequentially from Q1.
Average revenue per user (ARPU) was $1.05 in Q2 2017, an increase of 109% over Q2 2016 when ARPU was $0.50. ARPU also increased 16% sequentially over Q1 2017, which saw ARPU of $0.90.
The company commented via press release:
Hosting costs per DAU – Hosting costs per DAU were $0.61 in Q2 2017, as compared to $0.55 in Q2 2016 and $0.60 in Q1 2017. Capital expenditures – Capital expenditures were $19.4 million in Q2 2017, as compared to $16.4 million in Q2 2016 and $18.0 million in Q1 2017.
Snap Inc shares were trading at $13.77 per share on Thursday afternoon, up $0.21 (+1.55%). Year-to-date, SNAP has declined -43.75%, versus a 10.06% rise in the benchmark S&P 500 index during the same period.
Try StockNews.com Premium Today!
Get access to our daily newsletters, Best Stocks List, POWR Ratings, and much more!
Free for 14 days -- no credit card required!