Snapchat’s spike in users from coronavirus lockdowns has begun to taper off, despite a pause in reopening across many states forcing people to continue staying home.
“At the onset of widespread shelter in place orders, as people sought to stay connected and entertained from home, we observed an increase in daily active users that informed our initial estimate,” Derek Andersen, chief financial officer of Snapchat’s parent company Snap (SNAP), said during its second quarter earnings call Tuesday.
“This initial lift dissipated faster than we anticipated as shelter in place conditions persisted.”
Snap’s daily active users were 238 million for the three months to June, an increase of 17% from the same period last year but just shy of the company’s estimate of 239 million during its last earnings call in April. It was also slower year-on-year growth than the 20% recorded in the previous quarter.
The company’s stock fell 6% in premarket trading.