Snap’s Q2 earnings report was a big disappointment

Snap reported a worse-than-expected quarterly earnings as it missed Wall Street expectations on both fronts- revenue and user growth.

Snap said its daily active users (DAUs) reached 173 million in the quarter ended June 30, with a 4.2 percent growth rate, slower than the 5 percent growth that got it to 166 million DAU in Q1. Its losses too ballooned to $443 million, a fourfold increase from the same period a year earlier and worse than what investors had expected.

Snap missed on revenue too that reached $181.6 million with a loss of -$0.16 earnings per share. That’s compared to Wall Street’s estimates of $185.8 million in revenue and a loss of -$0.14 EPS plus 175 million users.

The company's poor growth once again renewed investor concerns about Snapchat's chances to grow into a mainstream service in the face of fierce competition from Facebook. Instagram hit 250 million daily users for its Snapchat-clone- Instagram Stories, in June, up from 200 million in April.

Snap's stock fell more than 15 percent in after hours trading.