Snap's shares have hardly crackled since the big pop of its IPO raised some $3.4 billion in early March, sliding $1.50 apiece since closing at $24.48 on the first day of trading. Snap’s first earnings report Wednesday reflects a $2.2 billion loss on roughly $150 million in revenue—an $8 million miss on 1Q 2017 expectations.
Although Snap has grown daily active users on its signature Snapchat app by 36% YoY, its total costs and expenses for the quarter were a staggering $2.4 billion, highlighting how problematic the burn rate of a unicorn startup can be on the public side.
Snap’s earnings also reinforce the well-documented difficulties of maintaining a strong bottom line with a business model that monetizes user engagement through advertising revenue.
The company's shares tanked some 23% in after-hours trading yesterday.