Tuesday, Aug 14 2018 | Updated at 04:04 PM EDT

Stay Connected With Us F T R

May 11, 2017 07:19 AM EDT

This was Snapchat's first quarterly earning as a public company yet the excitement turned to disappointment its Q1 earnings missed the expected mark. Some observers are placing the 'blame' on Facebook's aggressive pursuit to create its own suite of similar Snapchat apps.

Snapchat's Q1 earnings were $149.6 million, which might look big but far from its expected $159 million revenue. That was enough to send its share to suddenly plummet more than 20 percent in after-hours trading.

Not only did Snapchat's revenue suffered but also its daily active user (DAU) growth as well. Although the report showed that it added 36 percent more daily active users compared to last year, Instagram still outpaced the company.

According to TechCrunch, Instagram Stories is hitting its 700 million users mark with its daily active users reaching the 200 million mark last March compared to Snapchat's 161 million users.

Watch video

One of the main reasons for Snapchat's sudden low user growth is Facebook's aggressive push to transform its mobile application similar to Snapchat. Bloomberg reported that Facebook has been copying the company's many features and incorporated them in their mobile apps.

Snap, on the other hand, said that the $2 billion loss it sustained during the quarter was due to the stock-based compensation it initially offered in February.

Despite the disappointing Q1 earnings, Snap has shown some impressive performance and features. One of them is the new search feature which allows Snapchat users to search different stories shared by other users. Moreover, CEO Evan Spiegel said that Snap messages have also increased from 2.5 billion to 3 billion and its Oscars story has garnered 21 million viewers and 250,000 submissions.

Spiegel also added that the company has focused more on the quality, performance, and automation of Snapchat during the first quarter. Lastly, Snap's CEO can't help but blame Facebook over their loss, even comparing the competition to Yahoo and Google.

See Now: Facebook will use AI to detect users with suicidal thoughts and prevent suicide

Follows Snapchat, Snapchat Q1 Earnings, facebook, Snap
© 2017 University Herald, All rights reserved. Do not reproduce without permission.

Must Read

Controlling Robots With Brainwaves And Hand Gestures

Jun 23, 2018 AM EDTWhat if you can control robots with a simple flick of a finger? A team of experts is trying to make that a reality through this latest experiment.

Flavored Electronic Cigarettes Linked To Possible Cardiovascular Disease

Jun 16, 2018 AM EDTScientists from the Boston University School of Medicine looked into the effects of flavored e-cigarettes to the lining of blood vessels. Here are ...

LendingTree Study: Which Places Have the Most Student Debt?

May 31, 2018 AM EDTLendingTree outs its study that identifies places in the United States with the most student debt. Here's the complete list.

Best College Reviews Names 10 Best Master's in Biomedical Engineering Programs Online

May 31, 2018 AM EDTPlanning to pursue a master's degree in Biomedical Engineering? Here are some of the best online programs you need to consider.