We’ll give you a minute to boggle at that figure. Yes, Snap Inc’s first post-IPO set of quarterly financials reveals that Snapchat’s parent company posted a net loss of $2.2bn in the first quarter of 2017, compared to $104.6m a year ago.
But yes, there’s more to that loss than meets the eye: it includes $2bn of stock-based compensation expenses relating to the IPO.
Even so, Snapchat’s separate metric of ‘adjusted EBITDA’ which factors out that compensation still more than doubled year-on-year to a loss of $188.2m.
The financials also revealed that Snapchat’s revenues grew 286% from $38.8m in the first quarter of 2016 to $149.6m in Q1 2017.
Other key figures from the financials: Snapchat averaged 166 million daily active users in the first quarter of 2017, up 36% year-on-year, and 5% quarter-on-quarter. Wall Street wasn’t impressed, sending Snap’s share-price plunging by 24% in the hours following its announcement.
“Snap is emerging as the new stubborn, slow-growing Twitter amidst similar Facebook competition and reluctance to filter its feed that Twitter exhibited four years ago,” wrote TechCrunch, rather damningly.