News of heavy losses at Snapchat’s parent company, Snap Inc, saw shares plummeting by more than 10%
Losses at Snapchat’s parent company nearly quadrupled in the last three months, the company announced on Thursday. The news sent the social media company’s shares to a new low in after hours trading.
Snap Inc lost $443m in the second quarter. The company paid out $242m in stock based payments and associated taxes over the quarter. The mobile app’s revenues rose 153% to $182m, but were below Wall Street forecasts. The company also failed to match expectations for growth, adding 7.3 million new users over the quarter, below the 8 million expected by analysts. Snapchat had 173 million daily active users over the quarter.