Shares of Snap rose as much as 11% in after-hours trading Tuesday following the company's release of second-quarter earnings before quickly sinking into the red as investors digested the implications of a slowdown in users on its flagship Snapchat app.
Snap narrowed adjusted losses to 14 cents per share on a 44% hike in revenue to $262.3 million.
Snap, which has never had a profitable quarter, went public in March 2017 with a $17 share price.
Snapchat ended the quarter with an average of 188 million daily active users, compared to 191 million at the end of Q1.
The Average Revenue per User is a full ten cents above estimate, at $1.40. Analysts on average expected Snap to gain almost 2 million users in the second quarter from the first quarter, according to Thomson Reuters I/B/E/S.
A video was attached to the tweet which documented the moment Alwaleed met Snap's chief executive Evan Spiegel two years ago, when Spiegel visited Riyadh alongside the company's chief strategy officer Imran Khan.
Snap only brought in $2 million in non-advertising revenue.
"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", CEO Evan Spiegel said of the company's subsequent attempts to walk back some of the more unpopular aspects of Snapchat's redesign. Snap declined to estimate user growth for next quarter, but noted that third-quarter earnings have historically "trended down" for the company.
"It's always going to be a niche platform, so the modest change isn't very remarkable", said Pivotal Research's Brian Wieser.
The prince had previously been rumoured to be interested in investing in Snap prior to its IPO, though in 2015 a source told Reuters there were "no plans to invest".
Since then, the company has also launched a second-generation pair of its Spectacles, camera-enabled sunglasses that can upload content directly to Snapchat, in an attempt to diversify beyond software.