Snap stock shed more than 12 percent to an all-time low in extended trading Thursday after warning investors it will continue to lose daily active users.
The company posted a narrower-than-expected loss for the third quarter, as the company offsets declining user counts with higher revenue per user. But wasn't able to quell concerns about its shrinking user base.
Here's how the company did compared with analyst projections:
- Loss per share: 12 cents vs. 14 cents forecast by Refinitiv
- Revenue: $298 million vs. $283.2 million forecast by Refinitiv
- Global daily active users (DAUs): 186 million vs. 186.1 million forecast by StreetAccount and FactSet estimates
- ARPU: $1.60 vs. $1.52 forecast by StreetAccount and FactSet estimates
The company's stock, which gained 6 percent during the regular session Thursday, initially shot up 8 percent in extended trading before plummeting into the red.
Wall Street was keeping a close eye on active user numbers for Snap's namesake photo-sharing app, Snapchat, as global social media use plateaus and competitors threaten Snap's core user base. Facebook-owned Instagram has been snaking market share for several quarters.
Snap's reported number of 186 million falls in line with projections, but represents a 1 percent decrease from the previous quarter.