Snap added fewer users and made less money than Wall Street expected

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Snapchat picked up fewer users and less revenue in the second quarter than analysts had expected, sending shares of owner Snap Inc. tumbling Thursday afternoon.

Unfortunately for Snap, the intense fixation on the mega-meme didn't count for much in the grand scheme of its second-ever Wall Street earnings report on Thursday.

Snap, which launched its IPO at the beginning of March this year, also revealed its revenue more-than doubled to $181.7m (£140m) in the quarter.

The company surprised investors last quarter with a massive loss due to stock-based compensation, which included the almost $1 billion award for CEO Evan Spiegel.

Meanwhile, the average number of people using the vanishing message service daily rose 21 per cent to 173 million when compared to the same period a year earlier.

Snap's stock fell 15% in after hours trading Thursday following the earnings report.

One concrete metric announced was that Snap generated $5.4 million in "Other" revenue, which would equate to around 41,500 pairs of its Spectacles camera sunglasses at a $130 price point.

Spiegel said that he and co-founder Bobby Murphy wouldn't sell any of their shares in Snap this year, saying they still believe in the company's long-term success. Snap reported average revenue per user of $1.05 in the second quarter, with most of its growth coming from North America.

"Snap's challenges will become increasingly important to track, as its main competitor Instagram continues to roll out new (and similar) features to the same user base", Verkasalo warned.

"DAUs increased 7.3 million or four per cent quarter-over-quarter from 166 million in Q1 2017", Snap said in a statement. Snapchat had 148 million users this time previous year. The lockup expiration sent shares lower by 4.1% on August 1, the first day of trading after the expiration. And in the most recent quarter, users under the age of 25, a demographic that advertisers covet, are spending more than 40 minutes a day in the app.

However, Snapchat's user growth for the quarter was up 21 per cent on the same period past year. They set a "buy" rating and a $30.00 price target on the stock. Last quarter's tepid progress only bolsters the worry of slowing growth. The percentage-based deceleration was largely dismissed as the impact of a fast-growing user base that made future growth look relatively weaker. Pacer Advisors Inc. now owns 9,869 shares of the company's stock valued at $175,000 after buying an additional 757 shares in the last quarter.