Snap dropped more than 18 percent after it missed on revenue during its third quarter earnings Tuesday. Here are the headline numbers:

• Revenue: $207.9 million versus $236.9 million expected
• Earnings: Loss of 14 cents per share versus loss of 15 cents per share expected
• Daily active users (DAUs): 178 million versus 181.8 million expected
• Average revenue per user (ARPU): $1.17 versus $1.30 expected

The company posted a net loss of $443.2 million.

Part of the revenue miss came because Snap wrote down $39.9 million as a result of losses from unsold Spectacles, the company’s first foray into hardware. It said the charges were a result of excess inventory and inventory purchase commitment cancellations.

Though average revenue per user was up 39 percent compared to this quarter last year, it failed to reach Wall Street’s estimates.

The company also only added 4.5 million new users, with CEO Evan Spiegel admitting it grew its DAUs “at a lower rate than we would have liked” in prepared remarks. The lower rate could be partially because it averaged the entire quarter, and July and August were more lackluster than September Spiegel added.

The company is losing market share to rival Instagram, especially since the launch of feature Stories in 2016. However some ad technology platforms said there’s been increased company interest in Snap especially because its user base is different from Instagram and it has other types of ads, including better location-based targeting and augmented reality features.

Source: Tech CNBC
Snap plunges after huge revenue miss