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Snap shares fall to new low as loss widens

What's behind Snapchat's drop in users?

Snap, the parent company of social media platform Snapchat, saw its shares slide to an all-time low in after-hours trading following its announcement of large quarterly financial loss and sinking user numbers. 

For the third quarter, the company reported a loss of $325.1 million, or 25 cents a share. Snap reported revenue of $297.7 million in the period, surpassing analyst forecasts. Ten analysts surveyed by Zacks expected $283.5 million.

Globally, daily active users fell by 2 million from the prior quarter to 186 million. It's the second consecutive quarter in which the social media company has posted a drop in users. 

Snap shares fell more than 10 percent after trading closed, to $6.26. 

Snap has continued losing money since its initial public offering, but CEO Evan Spiegel recently outlined a plan, leaked earlier this month, to be profitable by 2019. In a lengthy memo, Spiegel acknowledged that the company "rushed" its redesign and set a goal of breaking even in the fourth quarter of this year and turning a profit in 2019. 

For the current quarter ending in December, Snap said it expects revenue in the range of $355 million to $380 million.

Snap shares have fallen more than 50 percent since the beginning of the year.