Snapchat After-Hours Stock Price Plummets, Losses Quadruple In Q3 Earnings Report

Snap Inc. (NYSE: SNAP) saw its share price plummet Tuesday after the company’s third quarter 2017 financial release showed it added only 4.5 million users and nearly quadrupled its losses from 2016. The company expected $236.9 million in revenue but reported $207.9 million.

Snap's earnings saw a loss of 14 cents per share versus a loss of 15 cents per share that was expected.

In after-hours trading, the share price dipped to $12.37 after closing at $15.12. After the poor earnings were announced, the share price had fallen roughly 17 percent.

Snap brought in $207 million in revenue for Q3, which is up 62 percent from this same period last year. But losses were staggeringly higher with a net loss coming in at $443 million. The company nearly quadrupled the amount of money it went through during this same period in 2016, $124 million. Unsold Spectacles, the camera sunglasses the company’s CEO Evan Spiegel touted as its future in hardware sales, accounted for $40 million of the losses.

Expectations were down pretty much across the board for the third quarter. Daily active users (DAUs) was at 178 million versus the 181.8 million users that were expected.

Snap reports it has 178 million daily active users, which is an increase of 17 percent year over year. Competition from Facebook has also reportedly hurt the company as Facebook Camera, Instagram Stories and WhatsApp Status have all directly aimed stepped up their efforts to take on Snapchat's market share.