Snap flops with disastrous Q3 earnings that send shares diving
- Snap badly missed expectations for its third quarter as a public company. Its stock dove as a result.
- Snapchat added 4.5 million users, up merely 3% from the previous quarter. A complete redesign of the app is planned to address the stagnant growth.
- Snap took a $40 million charge for misjudging the demand for its Spectacles glasses with excess inventory.
Snap Inc's stock plunged in after-hours trading on Tuesday after the company reported a disastrous third-quarter report that revealed widespread weakness throughout the business just nine months after its splashy debut on the public markets.
- Revenue: $207.9 million, up 62% year-over-year, but below the $235.5 million expected by analysts.
- Earnings per share (adjusted): Net loss of $0.14 vs. $0.15 expected
- Daily active users: 4.5 million new users for a total of 178 million, up 3% from Q2.