Snap Inc, the parent company of popular image and video messaging app Snapchat, suffered a massive drop in share price Wednesday following its first earnings report, which revealed slowing user growth and revenue that failed to meet analyst predictions.
In the report, Snap said that its daily active users (DAU) rose just over 36% to 166 million in the first quarter compared to one year ago, which is down from a near-48% rise in users from the fourth quarter and an increase of just under 63% for the third quarter that the company had reported for its IPO filling, Reuters reports.
Analysts from J.P. Morgan anticipated Snap’s DAUs to increase to 169 million by the end of the first quarter. Monness, Crespi, Hardt & Co predicted 173 million, according to Reuters.
Despite the drop in shares, Snap is still growing faster than its chief rival Facebook, which has adopted Snapchat-like features including disappearing 24-hour “stories” on its main platform as well as its subsidiary, Instagram. Facebook said it grew by 18% year-over-year and Twitter, another Snap competitor, reported a growth of 14% in that same time.
More Must-Reads From TIME
- Meet the 2024 Women of the Year
- Greta Gerwig's Next Big Swing
- East Palestine, One Year After Train Derailment
- The Closers: 18 People Working to End the Racial Wealth Gap
- Long COVID Doesn’t Always Look Like You Think It Does
- Column: The New Antisemitism
- The Best Romantic Comedies to Watch on Netflix
- Want Weekly Recs on What to Watch, Read, and More? Sign Up for Worth Your Time
Contact us at firstname.lastname@example.org