Shares of Snap dropped nearly 20% in after hours trading after the company reported revenue of $207.9 million, nearly $30 million less than expected by analysts. Snap posted a net loss of $443.2 million, or 36 cents a share, larger than the 33 cents per share forecasted. It also reported that daily active users increased just 3% from the second to the third quarter, the slowest growth rate since Snap began disclosing the metric.
In his prepared statement, Snapchat CEO Evan Spiegel announced an upcoming design of the app that will make it easier to use.
One thing that we have heard over the years is that Snapchat is difficult to understand or hard to use, and our team has been working on responding to this feedback. As a result, we are currently redesigning our application to make it easier to use. There is a strong likelihood that the redesign of our application will be disruptive to our business in the short term, and we don’t yet know how the behavior of our community will change when they begin to use our updated application. We’re willing to take that risk for what we believe are substantial long-term benefits to our business.
You can download Snap's prepared remarks for Q3 2017 by clicking here.