Watch CBS News

Snapchat Parent Posts Huge Loss, Misses Expectations After IPO

NEW YORK (AP) -- Snap, the company behind the Snapchat app popular with young people, says revenue grew sharply, but it had a large net loss related to its initial public offering of stock.

The owner of Snapchat reports a net loss of $2.2 billion in the January-March period. About $2 billion of it was for IPO-related stock compensation costs. A year earlier, before going public, it lost $38.8 million. Snap lost $2.31 per share in the first quarter, compared with 14 cents a year ago.

Snap's stock is plunging after-hours because the results missed Wall Street's expectations.

Analysts polled by FactSet were expecting a loss of $1.92 per share.

Revenue nearly quadrupled to $149.6 million from $38.3 million, but it's less than the $158.3 million that analysts were expecting.

© Copyright 2017 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.