Snap Inc. Reports First Quarter 2017 Results
Some quick highlights as to why the stock is being punished.<p>&gt; Adjusted Ebitda Loss $188.2M, Est. Loss $176.9M<p>&gt; 1Q Daily Active Users 166M, Est. 168M<p>&gt; 1Q Rev. $149.6M, Est. $158.6M<p>&gt; 1Q Loss&#x2F;Shr $2.31<p>I&#x27;m guessing the big issue is the miss on Daily active users.  This is the same thing that caused the street ot hammer twitter.<p>Rule of thumb for non profitable tech companies....<p>If you are a company that isn&#x27;t making a profit and you continually preach look at the users, look at the users. and then fail to even hit your target on that, you&#x27;re going to get punished.....heavily.<p>Or put another way, you can either make a profit or make your non GAAP numbers, but you have to atleast hit one of the two.<p>One other issue from the Bloomberg momentary....<p>&gt; A very key number here is revenue per user. Snap&#x27;s results today are  indicating average revenue per user at 90 cents. This is down from $1.05 (14%) from what it reported for Q4 2016, before its IPO.<p>To be completely fair, SNAP management wanted full control to build for the long term and Facebook was down 12% after their first earnings report and Twitter was down 24% so it might just be that its painful for rookie CEOs to manage a public company.<p>Too bad for employees that this comes before the lock up period ends.<p><i></i>EDIT<i></i><p>Just on the earnings call, they said they don&#x27;t break out Spectical&#x27;s numbers but the revenue it generated was about $8 Million.