It was a bleak day of trading for SnapChat-owner Snap Inc. on Tuesday.
The company not only reported slower user growth in its latest quarter but also said it would be redesigning the app. Traders were concerned over both developments and shares went tumbling.
In the last three months, daily active users for the company saw a boost, growing from 173 million to 178 million, but it was still less than the 181.8 million that Wall Street was expecting.
For the third quarter, Snap posted a net loss of $443.2 million, or 36 cents a share. It was a wider loss than the $124.2 million loss reported a year earlier. It was also wider than the 32 cent loss that analysts had been expecting.
The company’s average revenue per user at $1.17 was a rise from 84 cents a year earlier, but missed the $1.30 expectation of Wall Street.
Revenue at $207.9 million was also below the expectation of $236.9 million.
Chief Executive Evan Spiegel said the company would be redesigning the Snapchat app. He wrote, “We are going to make it easier to discover the vast quantity of content on our platform that goes undiscovered or unseen every day.”
According to Spiegel, in the short term the redesign would have a “strong likelihood” of being disruptive.
Shares of the stuck were already down 39% before the release, since the stock made its debut in the market in March.
Disclaimer: We have no position in Snap Inc. (NYSE: SNAP) and have not been compensated for this article.