SNAP is down over 19% after-hours following a dramatic miss for sales as users abandoned the app following its disastrous redesign.
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Daily active users were 191 million in the period, missing the 194.3 million average analyst estimate, according to data compiled by Bloomberg.
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Revenue rose to $230.7 million, below predictions for $244.9 million.
Over the past several months, Bloomberg notes, the company has altered the way its app works, separating conversations with friends from posts by media companies and public figures.
That caused confusion and criticism from users and celebrities, and led some marketers to spend less on advertising, even as Snap shifted to an automated ad-sales system.
The company said it will keep tweaking the design, leading to uncertainty in the months ahead. Snap also lost several top executives and cut 7 percent of its staff in a reorganization.
“Snap is going through a painful maturation phase,” said Daniel Ives, an analyst at GBH Insights.
Wall Street was looking for “further red flags around the company’s much-discussed app redesign,” he said.
SNAP is plunging to its lowest since August…well below $12…
SNAP is now down 30% from its IPO price of $17.
And it’s not going to get better soon as Snap Chief Strategy Officer Imran Khan said in prepared remarks to investors that growth will also be hurt by the redesign in the second quarter.
But don’t forget, it’s a camera company!!
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