Snap Inc. on Thursday reported a slightly smaller third-quarter loss than analysts expected, on higher revenues. But daily active users of the company's Snapchat app continued to shrink, by 2 million users from the previous quarter.
It was the second quarter in a row that the social media company posted a decline in users. Revenue rose to $297.6 million, more than the $283.2 million Wall Street analysts expected. Its net loss per share of 12 cents was less than the projected 14-cent loss.
Snap's stock price closed up before the report, rising 6 percent to $6.99. Shares jumped in after-market trading on the earnings news, but quickly fell back.
The results come after a year of turmoil at the company, which was kicked off by Chief Executive Evan Spiegel's decision to radically redesign the app in late 2017.
Users voiced dismay at the move away from a chronological message feed _ a Change.org petition gathered 1.2 million signatures within weeks _ prompting the company to redesign the redesign in May. But the damage was already done. User numbers continue to dwindle, adding to fears that Facebook has successfully stolen Snapchat's thunder by copying its core features with its Instagram Stories product.
In a 6,500-word memo to employees in late September outlining his strategy for 2019, Spiegel apologized for rushing the redesign. "In our excitement to innovate and bring many new products into the world, we have lost the core of what made Snapchat the fastest way to communicate," he wrote.
Earlier this week, following a series of executive departures in the last year, Snap announced two two high-profile hires with experience in user growth and monetization. An internal survey obtained by technology website Cheddar found that 40 percent of Snap's 3,000 employees indicated that they didn't plan to stay at the company.
