Other revenue doubled to US$8.3 million compared to the same quarter a year before, but many reports are suggesting sales of Spectacles were relatively soft, compared with the hype around them.
Its daily active user count did increase about 5 percent from last quarter, and 36 percent from past year to 166 million, but that is still well short of Instagram Stories, a clone that Mark Zuckerberg says has more than 200 million users.
Snap reported $149.6 million in revenue for Q1 2017, missing estimates of around $158 million. According to a March filing with the Securities and Exchange Commission, that ended up being 37.45 million shares that Snap valued at the time at almost $1 billion: $974,017,720.17, to be exact.
In its first report since floating on the stock exchange, Snap recorded net losses of $2.2 billion, largely due to costs associated with the IPO earlier this year.
Snap reported Q1 revenue of $150 million, a 286% increase from this time a year ago but below the expected $158 million. At that level, the stock price is just barely above Snap's initial offering price of $17.
Snapchat launched in 2012 as a mobile app that allows users to send photos that vanish within seconds.
Snap CEO Evan Spiegal said: "It is an easy way to grow daily actives quickly but we do not think those techniques are sustainable over the long term and it impacts our relationship with customers", according to The Guardian.
In addition, Snapchat is also losing twice as much money as it was this time a year ago.
On an earnings conference call with analysts late Wednesday, when an analyst asked if he was scared of Facebook, Spiegel laughed.
It wasn't just the Snaps that were disappearing on Wednesday.
From a long-term business perspective, Snap Inc. has to come up with ideas to not only expand its user base beyond messaging, but also beyond millennials.