For Q1, Snapchat revenue grew 54 per cent at US$230m however it missed its analyst estimates of US$243m, this result caused its shares to plummet 16 per cent.
This result was due to the unpopular redesign of the app, causing many of its users – including celebrities – to criticise the major changes and boycott the social media site.
Youssef Squali, an analyst with SunTrust Robinson Humphrey spoke to the WSJ saying he was disappointed and had expected Snap to do better in the quarter because “advertisers typically spend more money during the Olympics, which took place in February.”
Snap’s net loss dropped by 83 per cent to US$385.7m and its adjusted EBITDA grew 16 per cent from US$188m to US$217m.
Evan Spiegel, Snap CEO commented on the design change saying, “A change this big to existing behaviour comes with some disruption. We are already starting to see early signs of stabilisation.”
Currently, Snap’s shares are at US$14.13 down 1.4 per cent. Its shares was at a low on May 1 of US$13.75.
To read the full financial results click here.
