There was good news and bad news in Snap's second quarter.
Investors chose to focus on the former, at least for the time being.
Shares of Snap Inc. (SNAP - Get Report) jumped about 4% after-hours Tuesday after the social media company reported a narrower loss and higher revenues than expected. But it also reported a 2% sequential decline in daily active users (DAUs), the first time in its history it's reported a quarter-to-quarter decline in DAUs.
The Snapchat parent reported a net loss of 14 cents per share on revenue of $262 million. compared to expectations for a net loss of 17 cents per share on revenue of $250.4 million. The company's DAU of 188 million fell short of estimates for 192 million daily active users at the end of the quarter.
Of those 188 million users, 81.3 million were are in North America, while 62.9 million of those users are in Europe.
"We are excited by the progress we have been making and are optimistic about the opportunities ahead as we continue to invest in innovation," said Evan Spiegel, Snap CEO and Co-Founder, in a press release.
Snap shares have declined 10% year to date and the stock has declined about 50% since its debut in March 2017.
The company is holding a conference call with analysts to discuss the quarter at 5 p.m. ET.
On Tuesday afternoon after the close, high-profile tech investor Prince Alaweed Bin Talal announced that he had purchased 2.3% of the Class A shares of Snap for $250 million at an average price of $11 a share.