The results are not good.
Matt Britton, CEO of social media marketing company Crowdtap and an expert on millennials, believes Snapchat has "gotten ahead of itself" in pushing out new features, when what it does best - and what it's most used for - is one-on-one messaging. Hell, if you're over the age of 35, you probably don't even know how it works.
Spiegel, asked if he feared the company would be crushed by Facebook, said he remained committed to a strategy "to deliver value through creativity". Which, Snapchat earnings showed that the company has failed to do. Not only is Facebook a lot bigger than Snapchat, attracting 1.28 billion daily active users for its service in Q1, the company also seems to succeed in copying some of Snapchat's core features.
The imitation game might have taken its toll.
Facebook also announced that users for Instagram stories have reached the 200 million mark.
Snap's net loss was a staggering $2.2 billion, which was much greater than analysts expected. Why the insane big loss?More news: Swansea beats Everton 1-0, out of EPL relegation zone
Some $US2 billion of that loss was tied to stock compensation costs for the IPO as the company's youthful founders made hay.
However, the photo sharing app was able to report an increase in the number of daily active users - who grew from 158 million at the start of the year to 166 million.
Measured per user, revenues were three times higher than in the same quarter a year ago but 14% lower compared to the previous three months. Snap Chief Financial Officer Andrew Vollero confirmed that its Spectacles glasses generated more than $8 million in revenue.
A conference call with executives did little to allay investor concerns.
The company reported a loss before interest, tax, depreciation and amortization of $188.2 million, worse than the $178.9 million loss analysts had expected. Facebook's was $1.3 billion, in comparison. It closed at $22.98 Wednesday but by 5:43 p.m. EDT, shares had plunged to $17.59 and were heading lower, indicating a possible loss of confidence in the company from investors.