Shares of Snap Inc. , the firm the Snapchat app, behind plunged nearly 20 percent in after-hours trading Tuesday after the company missed by a mile Wall Street’s forecasts for sales and user growth.
the firm reported revenue of $207.9 million, well short of expectations of $235.5 million.
Snap said its daily active users rose 17 percent to 178 million in the third quarter ended Sept. 30. That was up 4.5 million from the second quarter, missing the 8 million additional users expected by analysts.
In a statement, CEO Evan Spiegel pinned much of the blame on the app’s functionality and said Snapchat would soon be undergoing a redesign.
“One thing that we have heard over the years is that Snapchat is difficult to understand or hard to use, and our team has been working on responding to this feedback,” he said.
Snap lost $443 million in the quarter, including a $40 million write down on Spectacles sunglasses that it wasn’t able to move.
