Snap Tumbles After Trailing Estimates for New Users and Sales
- First report after IPO shows daily audience growth is slowing
- Social app needs to innovate as Facebook adds copycat features
Snap Misses Forecasts for New Users and Sales
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Snap Inc. added fewer users than projected in the first quarter, a sign that Facebook Inc.’s strategy of copycatting virtually every feature of its Snapchat app is taking a toll on the newly public company. The stock tumbled 26 percent.
In its debut earnings report after a March initial public offering, Snap, whose mobile app lets users send disappearing video and photo messages, said it added 8 million daily active users in the period, for a total of 166 million, with growth from a year earlier slowing to 36 percent. Revenue also fell short of analysts’ estimates.