Snap (NYSE:SNAP) shares dropped sharply after hours on Thursday as the company reported first-quarter results that missed analysts’ expectations on revenue.
Earnings per share came in at one cent, adjusted, in line with expectations. Revenue was $989 million vs. $1.01 billion expected.
Global Daily Active Users numbered 383 million versus 384 million expected. Average revenue per user figured at $2.58 vs. $2.63 expected.
Although the company didn’t provide official guidance for the second quarter, it said in a letter to shareholders that its “internal forecast” for revenue would be $1.04 billion, representing a 6% year-over-year decline. Analysts were estimating that second-quarter sales projections would be $1.10 billion.
Snap’s first-quarter revenue declined 7% from $1.06 billion during the year-earlier period, while the net loss narrowed from $359.6 billion, or 21 cents per share, in the first quarter of 2022 to $328.7 billion, or 22 cents per share.
The company’s free cash flow was $103 million in the first quarter, representing a nearly 3% year-over-year decrease.
“We are working to accelerate our revenue growth and we are using this opportunity to make significant improvements to our advertising platform to help drive increased return on investment for our advertising partners,” Snap CEO Evan Spiegel said in a statement.
SNAP shares shrank $2.06, or 19.6%, to $8.44.