25% Of Snapchat's Market Cap Just Disappeared On Whopping $2.2 Billion Loss

SNAP's first earnings release since going public is shaping up to be a disaster, with the stock un-popping after hours and down 25% after the company disappointed on virtually every metric in its Q1 earnings release:

  • Revenue of $149.7MM missed expectatations of $158 million
  • The net loss of $2.2 billion was obviously bigger than anything expected.
  • Adjusted EPS of $2.31 missed as well
  • The company burned through $173 million in free cash flow, a nearly 70% increase in cash burn compared to a year ago.

But the main reason the stock is getting pummeled, is that Daily Average Users rose from 122 to 166 million, missing expectations of 168 million, and up from 158 million in Q4.

Just as bad, ARPU actually declined sequentially, dropping from $1.05 in Q4 to $0.90 in the first quarter.

The only good news is that SNAP had $3.2 billion in cash, although at the rate its cash burn is growing, it will have to sell more shares soon.

The result: 25% of SNAP's market value just disappeared as the street threw up all all over yet another failed growth story.

The good news is that with the stock crashing to new all time lows, at least all those penguin "analysts" who were "forced" to slap on a SNAP Buy reco just so they could be part of the Underwriting syndicate, can now finally say what they really mean.