SNAP Plummets To New Record Low After Missing Everything, Burns Through A Quarter Billion

Tyler Durden's picture

It's easy to summarize the just reported SNAP Q2 earnings report with just one word: disaster.

The company missed expectations on everything: from revenue, to earnings to average daily user, but at least it burned a boat load of cash doing it: a quarter billion dollars, or $228 million.

The details:

  • Q2 revenue $181.7 million, exp. 185.8 million
  • Q2 EPS loss of 16 cents, exp. loss 15 cents
  • Q2 Daily Active Users 173 million, Exp. 175 million.
  • Q2 ARPU $1.97, 10% below estimates

Of course, the company tried to spin the results favorably, as follows:

  • Daily active users (DAU) – DAUs grew from 143 million in Q2 2016 to 173 million in Q2 2017, an increase of 30.5 million or 21% year-over-year. DAUs increased 7.3 million or 4% quarter-over-quarter, from 166 million in Q1 2017.
  • Average revenue per user (ARPU) – ARPU was $1.05 in Q2 2017, an increase of 109% over Q2 2016 when ARPU was $0.50. ARPU increased 16% over Q1 2017 when ARPU was $0.90.
  • Hosting costs per DAU – Hosting costs per DAU were $0.61 in Q2 2017, as compared to $0.55 in Q2 2016 and $0.60 in Q1 2017.
  • Capital expenditures – Capital expenditures were $19.4 million in Q2 2017, as compared to $16.4 million in Q2 2016 and $18.0 million in Q1 2017

But the one number that should matter the most - unless SNAP somehow pivots into a cash burning juggernaut which, like some other companies that shall remain nameless, surges the more cash it burns - was its Cash Burn which surged from 150MM a year ago to 229 million, will push its stock even lower in the coming weeks and months.

And then there is the lock up, which releases more shareholders to sell on Monday, which in light of these results, they will.

Below are the key highlights in chart format.

The results:

Daily users:

ARPU

Free Cash Flow, or lack thereof:

Predictably, the stocks has just crashed to new all time lows below 11.91.

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NugginFuts's picture

Oh, what's that? Another unicorn goring accident? Good thing there's only, like, two of those in the whole world.

Cheer up, guys. I'm sure there's another VC out there waiting to lose a solid Billion in capital on barfing ghosts and disappearing nudies. 

Mazzy's picture

You think anything ever actually disappears?

NugginFuts's picture

hell no! That's why I'm waiting for the sequel app: SnapChat's Revenge. Now THAT company has a future!

American Psycho's picture

I enjoy watching the the canaries in the coal mine (SNAP and Blue Apron) begin to die.  Dead IPOs walking.

J S Bach's picture

SNAP crackled and then popped!

*groan*

Squid Viscous's picture

these wall st. kikes really polished up some IPO turds in a hurry to get them out the door,

greedy motherfuckers.

oDumbo's picture

And in related news... Facebook just snapped keyboards away from 1000 engineers putting final touches on the Snapchat killer.  Whew...that's a relief guys.  Bring your fingers in for a landing and fake taste some delicious avocado toast in our new millennial weight loss app!

johngaltfla's picture

I f'd up thinking the trash crash, er, tech crash wouldn't be one for the ages. Time to by one share of SNAP and get the certificate. Scripophily looks like a lot of fun, especially with Pets.com loser duplicates like SNAP.

GracchusBrothers's picture

I have a certificate of J P Morgan's International Mercantile Marine, the company that owned Titanic. Is SNAP rearranging deck chairs yet?

NiggaPleeze's picture

 

If the investors really get ticked off they can vote in new management.

Oh, wait ....

Creative_Destruct's picture

Imagine that, loosing money on a multi-billion dollar cap company that puts goofy cartoons on pictures on a f'n phone... what's not productive and useful about that?

Markets = Major Malinvestment Mashup.

Squid Viscous's picture

it's losing, as in: I am losing, I have lost, I'm a loser

loose is another word altogether, as in: that whore's box was really loose.

you're welcome

Creative_Destruct's picture

OOOPs... ( knew that, brain-fart mistake...thanks)

markovchainey's picture

I always did like the U.F.O. song "I'm a Looser" despite that error.

yogibear's picture

LOL, Wall Street boys unloaded bags of crap to the bagholders.

Their laughing as they transferred wealth again.

Federal Reserve has created hype and bubbles everywhere.

garypaul's picture

So what if I lost all my money in SNAP. I'll make it up in Bitcoin!!

Goldbugger's picture

Oh snap, sounds like 1999 all over.

smallbedbug's picture

Just like TESLA...

aliens is here's picture

Easy fix just charge everyone who uses the app. They'll make billions just like APPLE. LOL

Mazzy's picture

0% real value.  100% speculation as to how many greater fools will exist.

JuliaS's picture

Are we still talking about bitcoin?

koaj's picture

How does a company make money when their primary customer base is 12 year old girls? 

lumen ex lumine's picture

Hey ... don't forget The Beatles and the 1960's British Invasion !

runnymede's picture

You could ask BoltMedia and Kibu---- if they were still around.

 

HenryHall's picture

SNAP?

Isn't that some kind of welfare or food stamps?

SokPOTUS's picture

It's not destroying wealth *nearly* fast enough to compete with those debacles.

buzzsaw99's picture

175M DAU, yeah, sure, whatever you say bitchez.

SokPOTUS's picture

A Tesla owning Uber driver just Snapchatted a pic of his Blue Apron dinner to me.

 

It's like the cash was burning a hole in his pocket....

M4DM4N's picture

Holy Shit You Just Won The Internet!!!!  +1000

jmack's picture

yea, but did he have an old pets.com t-shirt on?

staceball's picture

lol that was effin awesome ha ha thanks for a hearty laugh he he :)

JuliaS's picture

... and how he paid for it all with bitcoin (I'm going to milk that cow dry).

Bill of Rights's picture

And they produce what ?

Dumpster Elite's picture

A really cool set of 1s and 0s for your smartphone.

Shpedly's picture

That's the beauty of it. Nothing. I swear these idiots got they're idea from the Seinfeld show. Remember when Jerry and George pitched thier sitcom idea to the TV executives. It was a show about nothing. Priceless.

allgoodmen's picture

They make things disappear. Like your money

GETrDun's picture

BTFD? not on this turd!

HRH Feant2's picture

Snap crap sums it up.

shizzledizzle's picture

Yea I was asleep at the wheel today and forgot to buy puts. 

TheSilentMajority's picture

I will load up on this pig when it hits a penny, but not a penny more.

Shpedly's picture

Maybe 5 bucks or less. At that point it will get bought out by somebody.

Shpedly's picture

On second thought your probably right given that Instagram is cleaning their clock.

Shaznardickleze the Doon's picture

Yeah well... it's shitware so what did you expect? THOTs use it for silly bitch filters.

Decred.org and Silver.