Photo app Snapchat added seven million new users in the past three months, its latest financial results show, but parent company Snap has failed to live up to Wall Street's expectations.
Snap's revenue of $US181.7 million ($A231.4 million) was well below the $US189 million predicted for its second quarter as a public company.
It reported a net loss of $US443 million, up from $US116 million in the same period in 2016.
Snapchat's daily active users rose to 173 million, compared with the 166 million reported in the previous quarter, but continues to trail many of its rivals.
Snap has suffered from falling stock prices since floating on the US share market earlier this year.
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Some of this fall has been driven by pressure from Facebook's family of apps - including Instagram - which have successfully introduced features similar to Snapchat in order to entice users to their services.
Since introducing a Stories feature similar to that of Snapchat, Instagram has seen daily use of the feature rise to more than 250 million, eclipsing Snapchat's entire user base.
However, Snapchat's user growth for the quarter was up 21 per cent on the same period last year.
