Snap Reports Poor Quarterly Results

  • Snap, the parent company of Snapchat, reported quarterly revenue growth of 62% from prior year but shares still fell 20% in after hours trading
  • The shares of Snap fell so sharply due to the concern around slowing user growth, with daily active users only growing 3% from Q2’17 vs. the 5% growth that was expected
  • Following the slower than expected user growth, Evan Spiegel (CEO of Snap), announced that the company will redesign the app to better appeal to an older demographic
  • The redesign might hurt short term metrics but the company is hopeful the change will re-ignite daily user growth