Despite his relatively large stake, Prince Alwaleed won't get any say in how Snap is run.
Second-quarter daily average users fell 2 per cent from the previous period to 188 million, missing the average analyst estimate of 193 million. That's despite the introduction of a new model of Spectacles this quarter.
Snap has tried to focus on developed markets with strong revenue potential, in contrast to Facebook's strategy of tailoring its apps for emerging markets that are contributing much of its new users.
Yet, things are not all bad. Snap is still operating at a net loss of $353 million, but it has decreased by 20 percent since this time a year ago.
The Average Revenue per User is a full ten cents above estimate, at $1.40. Revenues were also better than anticipated, coming in at $262 million where analysts had expected $250 million.More news: Apple is first public company worth $1 trillion
Snapchat's major redesign, first introduced towards the end of 2017, was also met with criticism by many users - including high-profile users such as Kylie Jenner - eventually forcing a further redesign. In other words, it's losing users, but it's making more money.
Prince Alwaleed Bin Talal, a businessman and a member of Saudi Arabia's royal family, announced Tuesday that he's acquired 2.3% of the class A shares of the messaging app maker.
"We feel that we have now addressed the biggest frustrations we've heard and are eager to make more progress on the tremendous opportunity we now have to show more of the right content to the right people", CEO Evan Spiegel said of the company's subsequent attempts to walk back some of the more unpopular aspects of Snapchat's redesign. Chief Executive Evan Spiegel said in prepared remarks that the redesign was the primary reason for usage slipping, but he credited the changes for increasing viewership of key ad-supported content this year. "Even though our iterative efforts to improve the existing application have helped increase new user retention on Android by almost 20 percent since Q4 of 2016, we believe that rewriting the application presents a big opportunity because it takes advantage of the latest Android capabilities and has a modularized structure that will make it easier for us to innovate in the future", said Spiegel.
Snap shares have dropped 10 percent since the beginning of the year.