Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Rebecca Zisser / Axios

Snap Inc.'s stock fell over 14% in after-hours trading Thursday after the company missed Wall Street analyst expectations for both revenue and earnings during the second quarter.

Also, Snap co-founders Evan Spiegel and Bobby Murphy said they will not sell shares this year, showing commitment from the company's leaders amid the employee lockup expiration Monday. "We believe deeply in the long term success of Snap," Spiegel said on the call.

Bottom line: The company added 7 million daily active users in Q2 2017, but missed Wall Street expectations for user growth and grew slower than previous quarters. Average revenue per user — a key metric for investors to see how well Snap's advertising efforts are working — was up more than double for last year, but the company's profits were lower than expected after expenses were greater than what investors had hoped.

By the numbers:

  • Users: (MISSED) 173 million in Q2 2017 vs. 174.61 expected by FactSet
  • Revenue: (MISSED) $181.7M, up 153% from this time last year, but missed Thomson Reuters estimates of $187 million
  • Losses: (MISSED) $443 million vs. $359 million expected by Thomson Reuters
  • EPS: (MISSED) Loss of 16 cents per share vs. loss of 14 cents per share expected by Thomson Reuters
  • Average revenue per user: (UP) $1.05, more than double a year ago ($0.50). It rose 16% from last quarter's $.90.

Key takeaways from the earnings call:

  1. Increased growth of memories: "Over 250 million snaps saved in memories every day," Spiegel said. It's a key point of growth for Snap which has rebranded as a camera technology company.
  2. Increased user engagement: "The average Snapchat daily active user sends 20 Snaps per day," Spiegel said.
  3. Heavy investments in studio partnerships. "We've worked with Warner Brothers on 48 movie releases in 2016," Snap's Chief Brand Officer Imran Khan said.
  4. User growth in North America: "We added 4 million net new users," Spiegel said. "Over 25% smartphone users in UK, US and France using Snapchat every day."
  5. Ad growth in North America: "Over 40% ads come from North America," Khan said. "Over 69 million (daily active users) are in the US & Canada.These two countries account for over 50% of total ad spend."

p.p1 {margin: 0.0px 0.0px 0.0px 0.0px; font: 14.0px 'Helvetica Neue'; color: #14171a; -webkit-text-stroke: #14171a; background-color: #f5f8fa} span.s1 {font-kerning: none}

Go deeper

At least 3 dead after Amtrak train derails in Montana

Photo: Jacob Cordeiro/Twitter

An Amtrak train derailed near Joplin, Montana, resulting in at least three deaths and multiple injuries to passengers and crew on Saturday, per authorities and a company statement.

The big picture: 141 passengers and 16 crew members were estimated to be on the Empire Builder train, traveling from Chicago to Seattle and Portland, when eight of the 10 cars derailed about 4p.m., Amtrak said early Sunday.

Updated 6 hours ago - Politics & Policy

Federal judge blocks vaccine mandate for NYC teachers

Students are dismissed from the first day of school at PS 133 in Brooklyn on Sept. 13. Photo: Michael Nagle/Xinhua via Getty Images

A federal appeals court is set to hear a challenge Wednesday to a vaccine mandate planned for New York City school employees.

Why it matters The vaccine mandate was set to begin on Monday, prompting concerns over staffing shortages in schools across the nation's largest school system. But a judge on Friday temporarily blocked the measure, per AP.

New York prepares for staff shortages from health vaccine mandate

New York Gov. Kathy Hochul during a news conference Tuesday in New York City.. Photo: Mark Kauzlarich/Bloomberg via Getty Images

Gov. Kathy Hochul (D) announced Saturday she would declare a state of emergency if there were health worker shortages due to New York's upcoming COVID-19 vaccine mandate.

Why it matters: Hochul moved to reassure concerns of staffing shortages in the health care sector in a statement that also outlined plans to call in medically trained National Guard members, workers from outside New York and retirees if necessary when the mandate takes effect Monday.

You’ve caught up. Now what?

Sign up for Mike Allen’s daily Axios AM and PM newsletters to get smarter, faster on the news that matters.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!