Snap's Sales Fall Short as Users Shun Redesign; Shares Slide
- Daily active users reach 191 million, missing analyst targets
- Tweaks to app, new advertising-sales system held back growth
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Snap Inc. reported first-quarter sales that fell short of analysts’ projections after rolling out a redesign of its main photo-sharing application, a move that turned off new users and held back advertising growth. Shares slumped as much as 19 percent in late trading.
Daily active users on the company’s Snapchat mobile app, which lets people share pictures and videos that disappear, were 191 million in the period, missing the 194.3 million average analyst estimate, according to data compiled by Bloomberg. Revenue was $230.7 million, below predictions for $244.9 million.