On Tuesday, Prince Alwaleed bin Talal also said he's acquired a 2.3% stake in Snapchat. The company has not been growing well for some time now, and now for the first time is losing daily active users, dropping from 191 million in the first quarter of the year, to 188 million in the last quarter.
However, there was positive news elsewhere in the results as parent company Snap Inc reported revenue of 262.2 million dollars (£202.6m), up 44% on this time past year and above analyst expectations. Critics in the past have anxious about Snap keeping user engagement up, keeping the users coming back and keeping them using the application, which is declining in some areas while growing in others, leading investors to boost the stock up in after hours trading although it has since levelled back to around the closing price.
The drop in daily active users is an unfortunate turn for the company, as it struggled with a tepid reaction to its app redesign late past year as well as continuing problems with its Android app.
For the current quarter ending in October, Snap said it expects revenue in the range of $265 million to $290 million.
Snap's CEO Evan Spiegel blames the two percent decline in daily active users to "the disruption caused by our redesign".
The platform has been under pressure from Facebook's line-up of apps, which have aggressively competed with Snapchat for millennial social media users in recent years. Analysts had expected Snap's user count to stay roughly the same in the second quarter after it rose by about 2% in the first quarter. "It has been approximately six months since we broadly rolled out the redesign of our application, and we have been working hard to iterate and improve Snapchat based on the feedback from the community", he said.
Snap lost about 1 million users in each of its three geographic reporting regions: North America, Europe and rest of world. It is also an increase of 13.6pc on the results from Q1 2018.
The Venice, California-based company said it had a loss of 27 cents per share.