Snap on Thursday reported revenue surpassing $1 billion for the first time in a quarter, with daily active users growing to 306 million.
But with the revenue total missing analyst expectations by $3 million, the stock took a hit in after-hours trading and was down at least 23 percent at one point.
Snap’s daily active users was up by 57 million, or 23%, in the year-over-year increase. The growth in DAUs exceeded projections at 20% for four consecutive quarters.
“Its stock plummeting 25% post earnings is largely due to there being little clarity from management on how badly the changes from Apple will affect ad growth,” said Haris Anwar, senior analyst at Investing.com.