CEO of Snap Inc. (NYSE: SNAP) Evan Spiegel announced that he nor his co founder Bobby Murphy would sell shares of their company after quarterly results didn’t reach analyst expectations. Shares have dropped 17% in extended trading and the company has reported daily active users and second quarter revenue to fall below analyst expectations, leading to a drop in shares to $12.
Many investors worry about Snap Inc.’s ability to fight for users and advertising dollars with competitors such as Facebook and Instagram who have similar features to Snapchat’s disappearing messaging app.
The company’s daily active users (DAUs) increased to 173 million in the second quarter, but was short of 175.2 million DAUs forecasted by analysts. The number of DAUs was 143 million in the year earlier quarter compared to 166 million in the previous quarter. The average revenue per user was $1.05 in the quarter which still was below analyst expectations of $1.07.
The CEO plans to make new strategies focusing on building creative tools that will give users more ways to create snaps. Additionally, the company is working to stabilize the backend infrastructure of the app in Androids, with better performance and stability hoping to be improved by 2018.