The Snapchat app logo is seen on a smartphone in this picture illustration taken September 15, 2017.
"Snap delivered a massive miss across the board which will further ignite fears that this company has major challenges ahead with its app redesign and business model in limbo", Daniel Ives, an analyst with GBH Insights, told investors in a note immediately after Snap posted results.
The number of daily active users, crucial for generating advertising revenue, rose to 191 million in the quarter ended March 31, short of consensus expectations of 194.15 million, according to Thomson Reuters I/B/E/S. Analysts had anticipated a loss of $204.7 million.More news: Cricket Australia calls in ethics experts for review into culture
Shares are down about 16% in Tuesday's after hours session at $11.90 in a 52-week range of $11.28 to $23.57.
Spiegel explained the company's reasoning for separating friends and creators in Snapchat's Discover platform was sound because it kept users from having their connection to their closest friends drowned out from pro creators who publish frequently. The website redesign in February famously led to one or another of the Jenners ditching Snapchat and temporarily costing the company $1 billion in market cap. The plunge comes after similar downturns in recent months as celebrities ranging from Kylie Jenner to Chrissy Teigen have publicly slammed the new app, which Snap execs acknowledged have left some advertisers skittish. "The confluence of the app redesign and backlash from core power users was a gut punch to Snap during the quarter, with signs more speed bumps could be on the horizon".