Shares within the proprietor of Snapchat have fallen sharply after a redesign of the messaging app turned off followers and advertisers.
Snap was down by 16% in after-hours buying and selling on Wall Avenue after an enormous slowdown within the rise in day by day lively customers within the first quarter to the top of March.
These rose by 4 million to 191 million, in contrast with the eight.9 million improve seen on the finish of 2017.
The determine fell wanting expectations, serving to push shares under $12 and increasing a slide within the value since February when it had climbed near $21 on hopes that the redesign was working.
Snap reported a web loss for the quarter of $385.8m, although that was a lot smaller than the $2.21bn loss reported a yr earlier.
Revenues rose 54% year-on-year to $230.7m, lacking Wall Avenue targets, and there was a warning that income progress would sluggish considerably within the second quarter.
The replace urged that Snapchat nonetheless faces a troublesome battle after its overhaul, designed to fend off the specter of bigger rivals resembling Fb.
Greater than one million individuals have signed a petition urging the corporate to take away the replace.
Debra Aho Williamson, analyst at eMarketer, stated: “The redesign did not simply make customers sad, it additionally made advertisers extra involved.
“That is not a great place to be in.”
Snap executives acknowledged that the brand new design – which retains content material from pals separate from different publishers – was hurting outcomes.
However they’re sticking with the plan which they are saying imagine will propel progress in the long term.
Chief government Evan Spiegel stated: “The redesign lays the muse for the way forward for each our communication merchandise and our media platform, and we stay up for doubling down on each.”
He added that, as beforehand warned, “a change this large to present behaviour comes with some disruption”.
The app has not been helped by the response of celebrities resembling Kylie Jenner, whose disparaging tweet about it in February despatched shares sliding.
It has additionally individually been criticised by pop star Rihanna over an advert which she stated shamed victims of home violence.