2018.05.0122:00:00UTC+00Snap Tanks Redesign Affect Quarterly Results

Shares of Snap plunged by as much as 17 percent after the firm reported revenue that missed estimates in its most recent quarterly report, as a redesign of its Snapchat messaging app drove away some long-time fans and advertisers.

Snapchat's daily active users, an important measure for advertising revenue, increased to 191 million in the January-March quarter, coming in below projections of 194.15 million. The figure was 15 percent higher compared to the same period a year earlier, and against the growth of 18 percent in the prior quarter.

For the period, total revenue surged 54 percent from the same period a year earlier to $230.7 million for the company's fifth quarterly earnings as a public firm. Analysts had expected revenue of $244.5 million.

The company posted a net loss of $385.8 million or 30 cents per share, against a loss of $2.21 billion or $2.31 per share in the prior year period. Snap's adjusted loss per share of 17 cents per share met analysts estimates.

Snap's executives acknowledged that the new design affected results but said they were adhering to the plan to keep content from friends separated from other publishers. They believe that the strategy will result in growth in the long run.

The firm said revenue growth will likely slow significantly in the second quarter.

Shares of Snap slid 16.5 percent to $11.77 in extended trading, continuing a decline in the stock since February.