Snap (NYSE: SNAP) served up another stinker of an earnings report on Tuesday night.

The social media company known for its disappearing messages got crushed again by a challenging ad market, and the stock fell by double digits on Wednesday. Revenue in the quarter was flat at $1.3 billion, which matched analyst estimates, and the company's adjusted earnings per share of $0.14 fell from $0.22 in the quarter a year ago -- though that still beat the consensus at $0.11.

However, those adjustments mask deeper problems with the business. It lost $289 million on a GAAP basis, and the company continues to spend aggressively on share-based compensation, despite promises to reel it in. Share-based compensation rose roughly 50% in the quarter to $451 million, though the company counteracted that dilution with $500 million in share repurchases. As a result, its cash balance fell by nearly $500 million in the quarter to $1.4 billion. 

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Source Fool.com