Snap Inc. (NYSE: SNAP) announced its financial results for the quarter ended March 31, 2017 on Wednesday, which is the company's first earnings report after IPO.
According to the company, revenue in the quarter ended March 31 was $149.6 million, which was below analysts’ expectation of $158 million. The company’s daily active users (DAUs), increased 36.1% to 166 million in the first quarter from the same period last year, but was lower than the increase of 47.7% in the fourth quarter.
In addition, average revenue per user (ARPU) was up from $0.32 in the same quarter last year to $0.90 in the first quarter. However, the results were lower than $1.05 per user in the fourth quarter of 2016.
“When Google came along, everyone really felt like they needed a search strategy,” said Evan Spiegel, the CEO of Snap. “When Facebook came along, everyone felt they needed a social strategy. And now I think with Snap, with our company, we believe that everyone is going to develop a camera strategy. Because I think we really help people understand how valuable the camera is, because it’s really the center of everything that we do. And I think, at the end of the day, just because Yahoo, for example, has a search box, it doesn’t mean they are Google.”
After announcing the disappointing results, shares of the company decreased over 20% to around $18 per share, which was just $1 above the IPO price.