Snap is set to open Wednesday near a record low after its earnings disaster.
The company attributed its revenue miss to the Snapchat redesign.
It warned that its second-quarter growth rate will decelerate.
Snap shares are trading lower by 21% and at a record low Wednesday after a disastrous first-quarter earnings report. The stock hit $10.96 a share early Wednesday, slipping below its previous low of $11.28.
The company reported revenue of $230.7 million, missing the Wall Street estimate of $244.93 million. The company attributed the decline in revenue to seasonality and the app redesign. "Revenue was $230.7 million in Q1 2018, up 54% year-over-year driven by growth in Snap Ads, and down 19% sequentially, primarily due to seasonality and our redesign," Snap's earnings release said.
Adjusted earnings-per-share came in at -$0.17, in line with expectations.
To make matters worse, Snap warned its growth trajectory will slow in the second quarter.
"We are planning for our Q2 growth rate to decelerate substantially from Q1 levels," Snap CFO Drew Vollero said, "with growth in auction impressions, partially offset by pricing for both Snap Ads and Creative Tools."
Snap is now down about 24% this year.