7 charts explain Snap's disastrous first-ever earnings report

Snapmade its first-ever earnings report as a publicly traded company last week, and investors were not happy with the first-quarter results. The company missed top-line expectations, and its daily active user count didn't grow as much as expected.While disappointing, the earnings report gave investors yet another glimpse inside the company that many are still learning about. Here's a breakdown of Snap's first quarter in seven charts.More important than even revenue growth right now for Snap is Snapchat's daily active user (DAU) growth. The company saw a stark slowdown in growth over the second half of 2016, and that trend continued into the first quarter this year. DAUs increased just 8 million, concentrated in North America and Europe. Snapchat has added just 1 million users in the rest of the world over the past two quarters. Analysts were expecting Snapchat to add 9 million to 10 million new users.Daily users still grew 36% year over year, but that's slowing significantly from last year. It did, notably, reaccelerate sequentially from the fourth quarter, when the company added just 5 million users. With a tough comparable quarter coming up, user growth should slow even further in Snap's next report.Without robust user growth, ad revenue slowed sequentially from the fourth quarter. While there's certainly some seasonality in the advertising business, Snapchat's in the relative early stages of monetization, and such a significant sequential decline is somewhat surprising.Comparatively, Facebook'srevenue declined just 9% from the fourth quarter even while it faces ad load saturation. And while Snap's daily user growth is slowing, it still increased at a slightly faster rate than Facebook on a sequential basis.Combining revenue and daily users into one metric gives us average revenue per user (ARPU). It's no surprise that North America continues to outpace Europe and the rest-of-world segment by a wide margin. While Snap managed to increase rest-of-world ARPU sequentially, it decreased in Europe. The two regions are now getting much closer in monetization, which is surprising.Drawing on the Facebook comparison again, the social-network giant generates more than 2.5 times as much revenue per user in Europe as in Asia-Pacific and more 4 times as much as in the rest-of-world region. While the regions aren't identical, it shows Snapchat is very under-monetized in Europe.See the rest of the story at Business Insider
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