That's despite a drop in active users-a first for the company.
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. In his prepared remarks, CEO Evan Spiegel said that the decline was primarily driven by disruption caused by the aforementioned redesign.More news: Texas student includes 14-foot long gator in graduation photos
Snap also has been redesigning its app to encourage users to interact with more of its ad-supported videos. 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. 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's ad revenue is on the rise, but the company saw its first decline in users, according to the quarterly report it disclosed on Tuesday.
The beginning of the end for Snap was when Instagram copied their Stories feature in 2016.More news: New Jersey woman spots Keith Urban cash for snacks at Wawa
Its revenue was $262 million (around Rs. 1,800 crores) in the second quarter, beating the average estimate of $250.43 million (roughly Rs. 1,700 crores), as average revenue per user surged to $1.40 (roughly Rs. 96) from $1.05 (roughly Rs. 72) a year ago.
The earnings report didn't have any specific sales figures for its latest Spectacles hardware, though it did report $2 million in non-advertising revenue.
Earnings from Facebook and Twitter in recent weeks spooked social media investors by showing issues around data privacy, abusive content and phoney accounts were weighing on user growth and sending expenses higher. Snap later made updates to roll back some of the more unpopular changes, but the damage was done. But within three months they were back at the $17 IPO price.More news: British politician Boris Johnson asked to apologize for burka comments