Snap, the parent company of the messaging app Snapchat, lost 17 cents per share on revenue of $230.7 million during the first quarter, the company reported on Tuesday following the close of trading on Wall Street.
The company’s revenue missed analyst expectations by 6%, exactly the kind of performance the company did not need. Snap’s CFO Drew Vollero provided more gloomy news.
“We are planning for our Q2 growth rate to decelerate substantially from Q1 levels,” Vollero said, “with growth in auction impressions, partially offset by pricing for both Snap Ads and Creative Tools.”
Snap’s shares closed trading down slightly to $14.13, but began a free fall after the earnings report posted. In after-hours trading, the stock plummeted 17 percent to $11.71. Prior to Tuesday, shares had plunged 33% since its February high of $21.22.
Here’s what analysts had expected from the Venice, CA-based Snap:
- A loss of 17 cents per share
- Revenue of $243.55 million
For the same quarter last year, Snap reported a loss of 20 cents per share on revenue of $149.65 million. Shares of Snap are down 33% since its February high of $21.22.
The company has seen three rounds of layoffs just this year. The most recent came in March when Snap layed off 100 employees, mostly from the sales division.
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