Snapchat lost three million users in Q2 2018

Snapchat lost three million users in Q2 2018

The company will continue to work on improving the app based on community feedback.

On Tuesday, Prince Alwaleed bin Talal also said he's acquired a 2.3% stake in Snapchat.

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.

The company has shifted over the past year to primarily selling ads through self-service, automated auctions rather than direct sales.

Snap lost about 1 million users in each of its three geographic reporting regions: North America, Europe and rest of world.

Snap has been able to boost sales volumes by competing with bigger services on price.

While there has been quite a bit of noise in regard to social media stocks lately, with Facebook taking the lead in the downtrend, Snapchat has pulled off a relatively impressive quarter, making this last quarter a quarter to remember for team Snapchat.

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"It gives an incredible opportunity for advertisers to come and win on our platform", Chief Strategy Officer Imran Khan told analysts on a webcast on Tuesday.

Despite this, it grew average revenue.

The company has struggled with a rocky redesign widely criticized by users.

Snap generated some $262.26 million in revenue during the quarter ending June 30, compared to $181.67 million during the same quarter a year ago.

Analysts had expected net losses of $0.17 per share in revenue of $251.19 million.

But daily Snapchat users fell to 188 million in the second quarter from 191 million in the prior quarter, Snap said, which could heighten investor anxiety about how competition and privacy issues are affecting Snap and its peers. The company's results for the first quarter of 2018 were below expectations, and now the Q2 earnings report has been released. Analysts on average expected Snap to gain almost 2 million users in the second quarter from the first quarter, according to Thomson Reuters I/B/E/S.

The new design, which was reportedly spearheaded by Spiegel himself, prompted an outpouring of anger from users nearly immediately.

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