Snap has been working to convince big advertisers to spend more of their budgets on Snapchat ads and reach the app's base of mainly 18-34-year-old users, and it beat analyst revenue forecasts as it drew in more global and small business advertisers.
But it posted otherwise unusually strong numbers - as well as a $250 million investment from a Saudi prince - that sent its stock soaring as much as 13%, before it came crashing down and bouncing all over the place again following renewed concerns around daily user numbers going forward.More news: Heat warning remains in effect for today across southern Ontario
More than six months later, Snap is now blaming the same design for a decline in its daily active users. Chief Executive Evan Spiegel said in prepared remarks that the redesign was the primary reason for usage slipping, but he credited the changes for increasing viewership of key ad-supported content this year.
The company has struggled with a rocky redesign widely criticized by users. This is a big one, considering all users see these but not all users necessarily purchase the premium filters that give you horns or make you a Scottish Fold.
Snapchat ad prices are down 90 percent in the past two years as it adopts automation, which typically drives down pricing.
The beginning of the end for Snap was when Instagram copied their Stories feature in 2016. In other words, it's losing users, but it's making more money.More news: Rescuers dig through quake rubble for aunt of Indonesian sprint star
Despite the fall in the number of users, the firm said revenues were up and its losses had declined in its second quarter. Instead, Snapchat dropped its daily user total by 2% to 188 million users from an expected 193 million.
Loss per share: 14 cents a share, whereas Thomson Reuters consensus estimate as 17 cents loss per share.
But the change has made it more hard for Snapchat to distinguish itself from other video-heavy apps and draw premium prices. After initially shooting up more than 10 percent following the unexpected revenue beat, it then dipped to below its closing price before ticking back up slightly.More news: Reported Liverpool target Leon Bailey's emphatic response when asked about his future