Snap Inc. announced second quarter earnings Aug. 7, reporting its first ever drop in users since the company’s incorporation in 2011.

The company reported 188 million daily active Snapchat users in the second quarter, representing a 2 percent decline from the 191 million first quarter daily active users.

Despite negative user growth, Snap trimmed its second quarter net loss to $353 million from $363 million in the first quarter of 2018. The $353 million loss was also 20 percent less than the company’s 2017 second quarter loss of $443 million. Second quarter revenues were up to $263.3 million from $181.7 million in the same period a year ago.

The company’s average revenue per Snapchat user increased 34 percent from its 2017 second quarter, totaling an average $1.40 per user.

Snap’s recent move from Venice to a larger office space in Santa Monica Business Park has already lost it $3.9 million and its earnings report predicts those losses will grow to somewhere between $25 million and $40 million as it continues to pay out leases.

Snap predicted its third quarter revenue would be between $265 million and $260 million. The earning report came after the stock market close Aug. 7, but the company’s shares were up seven cents to $13.12 before the announcement. That’s 46 percent lower than the original IPO.

Despite hemorrhaging money and losing almost half of its market cap since it went public, the company recently announced Saudi Arabia’s Prince Alwaleed Bin Talal purchased 2.3 percent of Snap for a reported $250 million. Its original content streaming feature also saw its viewers increase by 3 million, bringing it to a total of 10 million monthly.

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