Snapchat reported their second quarter financial results for 2018 on Tuesday and the results are mixed.
The social media platform increased their revenue by 44 percent, pulling in $262 million in Q2 2018. Unfortunately for Snapchat, their daily active users dropped by three million over the last quarter. They reported 188 million daily active users at the end of the quarter, compared to 191 million three months earlier.
The company's CEO and Co-Founder Evan Spiegel admitted that the drop in users may have had something to do with the backlash following their hated redesign. "While our Monthly Active Users continued to grow this quarter, we saw a 2 percent decline in our Daily Active Users," he said. "This was primarily driven by a slightly lower frequency of use among our user base due to the disruption caused by our redesign." Then Spiegel added, "We feel that we have now addressed the biggest frustrations we’ve heard."
According to Billboard, the news was received positively by Wall Street as Snap's shares immediately rose after the announcement, increasing over 9 percent during after-hours trading. This news is accompanied by the announcement that Saudi billionaire prince Alwaleed Bin Talal invested $250 million, acquiring a 2.3% stake in Snapchat. In a statement, he said, "Snapchat is one of the most innovative social media platforms in the world and we believe it has only just begun to scratch the surface of its true potential and we are blessed to be part of it."
The positive financial news won't mean anything if the app continues to lose daily users, but Spiegel expressed enthusiasm about the company's future on Tuesday. "We are excited by the progress we have been making and are optimistic about the opportunities ahead as we continue to invest in innovation," he said.
As Recode points out, Snapchat continues to be outpaced by Instagram Stories.
