Snap Inc. (SNAP), formerly known as Snapchat -which owns Snapchat, Spectacles, Bitmoji and Zenly-reported their fiscal quarterly earnings on Tuesday November 7,2017 after the market closed.

Immediately afterward, shares dropped like a rock. Many eyes had been focused on the shares awaiting the earnings as there had been some unusual speculative activity in the options market and some heavy active trading in the shares leading up to today.

The company changed the name from Snapchat to simply Snap in September 2016, when the company wanted to be able to include the Spectacles division under the single parent company.

The Numbers

The company reported bringing in revenues of $207 million dollars- falling way short of the $235 million dollars analysts had been expecting. Daily average users, which is how this company is analyzed as far as performance is concerned, average 178 million.

This is far less than $180.5 million that analysts had been thinking. The company reported losing $0.36 a share, and that compares with a loss of $0.15 per share in the year-ago period.

Shares closed down -$2.61 or down -17.26% in the after-hours session at $12.53. The regular session saw shares up $0.29 closing at $15.12.

Company And Analyst Comments

Chief Executive Officer Evan Spiegel had this to say to investors:

“There is a strong likelihood that the redesign of our application will be disruptive to our business in the short term, and we don’t yet know how the behavior of our community will change when they begin to use our updated application. We’re willing to take that risk for what we believe are substantial long-term benefits to our business.”

Brian Wieser, an analyst at Pivotal Research offered this up to Snap Inc.’s management:

“What really matters is what gives us some confidence in the long-term revenue opportunity. The more they tell us to help us understand the business, the happier their investors will be.”