The millennial love affair with Snapchat is officially over: Parent company Snap Inc. today reported its first-ever decline in active users in its second quarter.

In a mixed bag of results, the messaging app maker reported $262.3 million in revenue and a loss of 14 cents, beating market predictions of a 17-cent loss on $249.8 million in revenue. The net loss by Snap, famous for suggesting it may never make a profit, declined 20 percent to $353 million in the quarter from a year ago and $385 million in the first quarter.

Daily active users, the average number of users who use Snapchat on a given day, rose 8 percent from last year to 188 million but was down 2 percent from the previous quarter, the first time Snapchat has ever seen a drop in DAUs between quarters.

Snap did manage to make more money from its declining user base, with average revenue per user coming in at $1.40, up from $1.05 year-on-year.

The drop is user numbers was blamed squarely on a controversial redesign implemented by Snap last year in an effort to milk more money from its user base.

“It has been approximately six months since we broadly rolled out the redesign of our application, and we have been working hard to iterate and improve Snapchat based on the feedback from our community,” Snap Chief Executive Evan Spiegel said in prepared remarks. “We feel that we have now addressed the biggest frustrations we’ve heard and are eager to make more progress on the tremendous opportunity we now have to show more of the right content to the right people.”

What Spiegel didn’t mention is that though the redesign didn’t help, it’s Snapchat’s competitors that are stealing its users, primarily in the form of the Facebook Inc.-owned Instagram, which continues to go from strength to strength thanks to millennials as well.

Not everyone was negative on the results. Brian Wieser, senior research analyst for advertising at Pivotal Research Group LLC, said in a note to clients that he thought the results were decent, since revenue came in above forecasts thanks to “better-than-we-thought” international trends, though worse domestic ones, along with in-line guidance.

“These results do not cause us to alter our longer-term view by much,” Wieser wrote. “We saw and continue to see Snap as a niche platform with a reasonably dedicated user base and a relatively novel advertising environment.”

Snap’s share price was all over the place. After the close of regular trading, when shares closed at $13.12, investors at first drove them as high as $14.60 in after-hours trading before properly digesting the decline user numbers. Then the stock fell as low as $12.58 before finally settling at $13.20. For his part, Wieser values Snap stock at $9 a share and has a sell recommendation on it.

Image: Pixabay