Snap Inc., the parent company of the video messaging app Snapchat, posted weaker-than-expected financial results in the third quarter, pushing down shares of the social media company in after-hours trading Tuesday.
Snap reported revenue of $208 million, well below analysts' consensus estimate of $238 million.
Losses, meanwhile, remained the same as in the second quarter at $443 million. Analysts were expecting losses of $405 million, according to FactSet.
Snap, which is hungry for more users, added 5 million new daily active users, bringing its total to 178 million. Analysts were expecting 8 million more users.
Snap shares closed up 2 percent at $15.12, but quickly nosedived nearly 20 percent after the quarterly results were disclosed.
In Snap's first two quarters as a public company, its shares fell 21 percent and 17 percent, respectively, after reporting its quarterly earnings.
Snap's leadership has argued the company needs several years to prove its potential. Snap, which was one of the biggest tech IPOs when it debuted in March, has struggled to placate investors worried about slow user growth and competition from Facebook's Instagram.
