Snap misses on earnings after rough redesign rollout
Illustration: Rebecca Zisser / Axios
Snap shares fell more than 16% in after-hours trading Tuesday after the company missed Wall Street expectations for revenue and user growth.
Why it matters: The company has faced backlash from users, including popular celebrities, after it redesigned its app to separate content from social conversations. Analysts warned that the difficult redesign process could affect user growth.
By the numbers, per CNBC.
- Revenue: $230.7 million vs. expected $244.5 million expected (according to Thomson Reuters)
- Earnings per share: -$0.17 vs. -$0.16 expected
- Daily active Users (DAU): 191 million vs. 194.2 million expected by FactSet
- Average revenue per user (ARPU): $1.21 vs. $1.27 expected by FactSet
"We are now focused on optimizing the redesign based on our ongoing experimentation and learning," Snap Inc. CEO Evan Spiegel said in prepared remarks.