Snapchat loses three million users in three months

  • Snapchat loses three million users in three months

Snapchat loses three million users in three months

However, the firm reported its first-ever decline in quarterly users.

The photo and video sharing app reported daily active users for the last quarter of 188 million, down from 191 million in the first quarter of the year.

Snapchat's controversial redesign has sent users running for the exits.

Shares in Snap were flat in after-hours trading following volatility that saw them fall briefly before surging more than 12 percent.

More than six months later, Snap is now blaming the same design for a decline in its daily active users.

Snap blamed the decline on the "disruption" caused by its redesign. Analysts on average expected Snap to gain almost 2 million users in the second quarter from the first quarter, according to Thomson Reuters I/B/E/S.

He said the company believes it has addressed users' biggest frustrations.

Prince Alwaleed bin Talal has acquired a 2.3 percent stake in Snapchat in a deal worth $250 million (SR950 million).

His investment comes about three years after he met Snap chief executive Evan Spiegel and chief strategy officer Imran Khan, when the two executives visited Saudi capital Riyadh. In other words, it's losing users, but it's making more money.

The earnings report didn't have any specific sales figures for its latest Spectacles hardware, though it did report $2 million in non-advertising revenue. Overall, the company posted a loss of $353m, or 27 cents a share, compared with a loss of 36 cents a share a year ago. Despite the decline in active monthly users, Snapchat saw its revenues jump to $262.3 million, up by 44 percent from the same quarter previous year.

Snap, which has never had a profitable quarter, went public in March 2017 with a $17 (roughly Rs. 1,200) share price.

Earnings from Facebook and Twitter Inc in recent weeks spooked social media investors by showing issues around data privacy, abusive content and phony accounts were weighing on user growth. The stock jumped immediately following the IPO but has lost some 50 percent since.

But the change has made it more hard for Snapchat to distinguish itself from other video-heavy apps and draw premium prices.