Snap loses users for the first time, beats on revenue

Snapchat Parent Snap Posts Its First Loss in Daily Active Users

Snapchat lost 3 million daily users in the past three months

Still, analysts expressed concern that advertisers and users prefer Facebook Inc's Instagram app over Snapchat. He said in a statement Snap had just begun to "scratch the surface of its true potential".

This appeared to confuse the market initially, who rallied behind Snap's share price initially in after-hours trading, but it seems likely this will only be a temporary reprieve before the company gets purchased by AOL, like all eventually defunct web brands.

Tuesday also brought the surprise news of a $250 million investment in Snap by the Saudi Prince Alwaleed bin Talal.

"It gives an incredible opportunity for advertisers to come and win on our platform", Chief Strategy Officer Imran Khan told analysts on a webcast on Tuesday.

Snapchat founder and Snap CEO Evan Spiegel blamed the decline in users on the redesign of Snapchat earlier this year.

The company has struggled with a rocky redesign widely criticized by users. The company is expecting revenues of between $265 million and $290 million for the quarter, and an EBITDA loss of between $185 million and $160 million.

Kim Kardashian hates her daughter Chicago's name
The 37-year-old added that she has chose to give Chi, pronounced "shy", a middle name, which Kanye apparently hates. The couple's older children, North West and Saint West , will just have to deal with having one name.

The firm earned revenue of $262m in the quarter, up 44% from the same period in 2017.

However, there was positive news elsewhere in the results as parent company Snap Inc reported revenue of $262.2m, up 44pc on this time previous year and above analyst expectations. Analysts had expected Snap's user count to stay roughly the same in the second quarter after it rose by about 2% in the first quarter.

Eleven of Snapchat's shows reached an audience of over 10 million users during the quarter, compared to seven shows in Q1.

The company cautioned that usage tends to slow in the third quarter, but did not make a specific forecast.

Snap became the latest social-media company to post disappointing user growth in the second-quarter after sluggish numbers from Facebook Inc. and Twitter Inc. last month caused stock plunges.

Snap executives told analysts that the redesign was the primary reason for usage slipping and that a European Union data protection law that spurred changes to user privacy terms had no material effect. Users spend an average of over 30 minutes on Snapchat every day, he added, and user retention for people older than 35 has increased more than 8 percent.

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