Snapchat reported its second quarterly earnings as a public company today. It grew its user base and revenue, but not as quickly as investors had hoped. And its losses continued to widen. As a result the share price, which had already dipped well below the IPO price, continued to slide in after hours trading.
Snap said it’s daily active user base was up by 7.3 million people from last quarter, an increase of four percent. That puts its total at 173 million, likely a little but ahead of Twitter and far behind Instagram, or even just Instagram Stories, a feature that copied Snapchat’s main product.
Snap’s revenue was up 153 percent from the same period last year, rising to $181 million. But the amount of money it lost also ballooned, growing about four fold to $443 million. That meant that, while the average revenue per user it earned went up, the companies free cash flow also declined.
