What happened

Shares of Snap (NYSE:SNAP) have dropped today, down by 6% as of 12:40 p.m. EDT, after the company announced its second-quarter earnings results. The Snapchat parent reported its first decline in users.

So what

Revenue in the second quarter jumped 44% to $262 million, while Snap's net loss narrowed to $353 million, or $0.27 per share. On a non-GAAP basis, the company lost $0.14 per share. The results beat the market's expectations, which called for $247.2 million in sales and an adjusted loss of $0.17 per share.

Snapchat logo

Image source: Snap.

The company said daily active users (DAUs) declined 2% on a sequential basis to 188 million, compared to 191 million at the end of the first quarter, which Snap attributed to its controversial redesign.

Now what

Separately, Prince Alwaleed Bin Talal of Saudi Arabia announced he had acquired a 2.3% stake in Snap for $250 million, saying, "Snapchat is one of the most innovative social media platforms in the world and we believe it has only just begun to scratch the surface of its true potential and we are blessed to be part of it."

For the first time, Snap is issuing financial guidance for the coming quarter. Outlook for the third quarter calls for revenue in the range of $265 million to $290 million, which would represent year-over-year growth of 27% to 39%. Adjusted EBITDA is forecast in the range of negative $160 million to negative $185 million, compared to negative $179 million a year ago.