In its first earnings call, Snap is already trying to move goal posts away from stuff like revenue and daily active users and onto "engagement".
Shares in Snapchats parent company Snap Inc. have plummeted in value by nearly a quarter to the tune of $6 billion.
Snap's net loss widened to $2.21 billion, or $2.31 per share, in the first quarter, from $104.6 million, or 14 cents per share, due to stock-based compensation related to the IPO.
Snap is better than Twitter: RBC analyst Mark Mahaney, who thinks Snap shares can hit $31, argued Thursday that Snap has a number of key advantages over Twitter. Its revenue was below Wall Street's expectations in its first quarterly earnings since its initial public offering of stock.
The announcement will show how much ad revenue the company behind the Snapchat app generated from January through March and how much money it spent on employees, technology and research.
Growth in Snapchat's user base began to slow down a year ago after Facebook's Instagram copied Snapchat's "stories" feature, which lets users post short video clips that disappear after 24 hours. Among those expenses, CEO Evan Spiegel received a $750 million bonus for taking the company public.
"At the end of the day, just because Yahoo has a search box doesn't mean they're Google", Spiegel says, a clumsy metaphor that improbably compares Snap to Google's position in the search engine wars. Perhaps most damning of all, user growth at Snap is much slower than Wall Street wanted. A five per cent increase in new daily active users isn't the kind of growth investors were looking for. Most young people using the app were found to believe that they would not be using it once they turned 35.
Earlier today, Snap Inc.
In recent months, Facebook has launched Facebook Stories, a near-identical clone of Snapchat's most popular feature, also called Stories.
A Snapchat sign hangs on the facade of the New York Stock Exchange (NYSE) in New York City, on January 23, 2017.
It is also registered an increase of 36 per cent on the 122 million daily users the app had this time a year ago.
But it wasn't all bad news for stock investors - short sellers are poised to make a killing on the share plunge. The update changes the way users send Snaps to each other.
The majority of Snap's business comes from the advertising it sells around curated Stories and the channels run by publisher partners on Discover.
Facebook also allows users to tweak photos on their smartphones with visual details like a rainbow or a beard of glitter, also similar to Snapchat.