In its third earnings report since the company went public in March with a US$3.4 billion valuation, Snap posted a net loss of US$443.2 million, or 36 cents per share, compared with a loss of US$124.2 million, or 15 cents per share, a year earlier.
After Snap released its earnings report on Tuesday, Spiegel got on a conference call with analysts and acknowledged a series of mistakes and shortcomings.
Snap CEO Evan Spiegel said Tuesday the company would be redesigning its app to make it easier to use. The announcement came after Snap posted its third quarter earnings report, which showed weak revenue and user growth.
Snap's shares were originally priced at $17 per share, before skyrocketing to $24 on their first day of trading.
As a result of Snap's largely private ownership structure, Tencent and Snap, unlike many United States stock market-listed corporations, are not obligated to disclose changes in Tencent's ownership of Snap's Class A stock, Snap said in the regulatory filing. The two companies, Tencent and Snap, have always been connected to each other.
Daily users averaged 178 million, less than the 180.5 million estimate of analysts surveyed by Bloomberg.
It's proven very hard for Snapchat to grow usage and revenues from its image-based messaging app - not least because of a huge amount of competition from the likes of Facebook and its companion apps Instagram, Messenger and WhatsApp; as well as a number of other apps. We're willing to take that risk for what we believe are substantial longterm benefits to our business. "As a result, we are now redesigning our application to make it easier to use", Spiegel said.
"The speed of this transition surpassed our expectations, but has dramatically reduced pricing as advertisers move from direct sales to our unreserved auction", Spiegel said in his remarks.
Snap also indicated it was cutting back on Spectacles, its video recording sunglasses.
The Chinese internet company Tencent has acquired a 12 percent stake in Snap, with the social media company struggling to boost user growth.
Spiegel is now planning to redesign the Snapchat app.
Now, the company said it's taking a $39.9 million writedown on all the inventory the company is unlikely to sell.