Hit by the growth of Facebook-owned Instagram ‘Stories’, photo-sharing platform Snapchat managed to add only seven million daily active users (DAUs) in the second quarter of 2017.
Announcing financial results for the quarter ended June 30, Snap Inc reported a loss of $443 million, with $181 million as revenue which was still below analysts’ expectations of $186 million, CNET reported late on Thursday.
Snap shares plunged 14 per cent after the results.
“We believe deeply in the long-term success of Snap,” CEO Evan Spiegel told analysts after the results, adding that “the company is making progress”.
The DAUs grew from 143 million in Q2 2016 to 173 million in Q2 2017 — an increase of 30.5 million or 21 per cent (year-over-year).
“DAUs increased 7.3 million or four per cent quarter-over-quarter from 166 million in Q1 2017,” Snap said in a statement.
On the other hand, Instagram ‘Stories’ has garnered over 250 million MAUs. Instagram currently has nearly 700 million users globally.
The results underscore that “Instagram Stories has essentially flattened Snapchat’s meteoric rise.”