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Snapchat lost three million users in Q2 2018

Snapchat lost three million users in Q2 2018

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

The number of daily active users fell 2% in the latest quarter to 188 million, coming in below Wall Street's expectations of 193 million users.

The Los Angeles-area company beat Wall Street's expectations for both revenue and losses, and its share price surged by more than 13% on the news in after-hours trading to almost $15, before briefly stabilizing around $14 - an overall gain of about 6%. After the report was released, Snap's stock price rose slightly to $13.20 from the regular session's close of $13.12. It was the first full quarter that all users were transitioned to the redesigned Snapchat, which rolled out this year. Snap previously didn't disclose any monthly user numbers, with executives arguing that daily actives better reflected the activity on the platform.

The Los Angeles-based social network reported $262 million in revenue, beating the $250.4 million expected by analysts, and lost 14 cents per share.

Analysts on average expected Snap to gain almost 2 million users in the second quarter from the first.

Snap blamed the decline on the "disruption" caused by its redesign.

Snapchat rolled out a massive redesign to its app in November of a year ago that stirred quite a bit of controversy.




Snapchat ad prices are down 90 percent in the past two years as it adopts automation, which typically drives down pricing.

That's despite a drop in active users-a first for the company.

"We feel that we have now addressed the biggest frustrations we've heard and are eager to make more progress on the tremendous opportunity we now have to show more of the right content to the right people", CEO Evan Spiegel said of the company's subsequent attempts to walk back some of the more unpopular aspects of Snapchat's redesign.

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.

Snap lost about 1 million users in each of its three geographic reporting regions: North America, Europe and rest of world.

Snap also released guidance for Q3 2018 for the first time.


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