Investing.com -- Snap Inc (NYSE:SNAP) shares sank 16% in after-hours trading after the social media platform missed expectations on its guidance.
Snap did beat expectations for its second quarter, reporting a loss per share of 2 cents versus expectations for a 4 cent a share loss. Revenue of $1.07 billion edged higher than expectations for $1.05B.
Global daily active users were 397 million, slightly higher than expected.
Snap said its guidance for the third quarter assumes that daily active users will be about 405M to 406M. Based on this it expects total sales between $1.07B and $1.13B, implying negative 5% to flat year-over-year growth, it said. The ranges are slightly below what analysts were forecasting.
Snap said it continues to invest in artificial intelligence and other infrastructure to improve the performance of its ad platform, drive deeper content engagement, and bring innovative product experiences to users.
“This forecast also assumes modest sequential headcount growth as we continue to carefully calibrate our operating investments to focus on the inputs most essential to the acceleration of topline growth,” it said.