Snap Adds 9 Million Users in Q2, But Stock Tanks 11% in After-Hours Trading

Snapchat parent company easily topped analyst sales estimates, but it wasn’t enough to satiate investors, at least at first blush

Correction: This story originally reported Snap lost $355 million in Q2, which was incorrect. Snap’s Q2 net loss was $325 million.

Snapchat added 9 million new users during the second quarter and topped Wall Street’s revenue estimates, but Snap’s stock still dropped 11% in after-hours trading after the company posted its Q2 financial report.

The new users push Snapchat to 238 million overall, up 17% year-over-year. Analysts had anticipated Snapchat would add somewhere between 9-10 new users. Snap, in its letter to shareholders, said users opened the app 30 times per day during Q2 on average.

The Los Angeles-based company posted a loss of 9 cents per share — matching analyst estimates — and reported $454 million in revenue, surpassing estimates of $438 million.

Comments