Shares of Venice, Calif.-based tech company Snap Inc. (SNAP) have plunged nearly 13% Friday morning as the social media giant failed to meet consensus estimates in its most recent quarterly report. Investors are clearly disappointed in what has been called a “make or break” quarter for the photo and video sharing app, driving the shares to less than half of the March initial public offering (IPO) price.

In the fiscal second quarter, Snapchat posted an adjusted loss of $0.16 per share, while the Street had expected a loss of $0.14. Revenue increased 153% over the same period last year to $181.7 million, short of the consensus at $186 million.

Slowing User Growth Ignites Fears

While Q2 daily active users (DAUs) rose 21% year-over-year (YOY) to 173 million, Snapchat missed forecasts for 175.2 million DAUs, according to FactSet. New user growth slowed to 7 million this quarter after adding at least 8 million last quarter. The Street remains worried that Snap will continue to see user growth slow as it is copied by larger tech giants such as Facebook Inc. (FB), most recently with Instagram Stories, which had more than 250 million users, as of August 2. Snap’s average revenue per user (ARPU) also came in below expectations, despite more than doubling from last year and growing 16% on a quarterly basis to $1.05. (See also: Facebook Making 'Stories' Public Is a Blow to Rival Snapchat.)

The messaging app’s user growth was also dragged down by problems faced by users of Android-based phones outside of the United Sates. On a conference call on Thursday, Chief Executive officer (CEO) Evan Spiegel said the company is still in the early stages of making improvements to the app’s performance on Android phones equal to that on the iOS app. (See also: Snap Revenue to Reach $3B by 2020: Citi.)

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