Snapchat lost $2.2 billion last quarter

Snapchat sold about $8 million worth of Spectacles (not that it helped much)

The Q1 report says the app saw 166 million daily active users during the first quarter, up from 158 million during the final quarter of 2016.

About $2 billion of Snap's $2.2 billion net loss in the January-March period was for IPO-related stock compensation costs.

Instagram revealed last month that there were more than 200 million daily active users for Instagram Stories, its Snapchat clone - or more than the number of daily users for Snapchat itself.

Analysts from J.P. Morgan anticipated Snap's DAUs to increase to 169 million by the end of the first quarter.

Twitter, meanwhile, beat expectations handily in its first earnings report, with revenue of $242.7 million and earnings per share of $0.02, while expectations had been for $217.82 million on a loss of two cents a share.

It's bad, but not unprecedented, reports the Los Angeles Times, noting Facebook stock fell 10% and Twitter stock fell 22% following the first quarterly earnings report after an IPO. Since then the company is trying to convince Wall Street that it can earn more money than Facebook from advertising while the rival company is penetrating aggressively into Snap's territory.

Snap emphasized on a call with analysts Wednesday that its users were spending more time than ever on Snapchat, as it seeks to convince investors that loyalty to its products matters more than the size of its user base.

Shares in Snapchat's owner have sunk after it reported disappointing growth in the first three months of the year.

Snap CEO Evan Spiegel said in the earnings call that the company refuses to engage in the type of "growth hacking" used by other companies, including sending lots of push notifications to get users to "do something unnatural". Kerr said in an interview earlier this year. "Just because Yahoo has a search box doesn't mean they're Google".

According to Reuters, the $27.98 billion company's weak user growth could be attributed to intensified competition from Facebook Inc (FB), which increasingly copies SNAP's formats across all its platforms. The company added 3 million users in Europe as well, to arrive at 55 million DAUs.

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