Snapchat parent Snap reported this afternoon that during the second quarter, the messaging app lost three million daily active users. That number now stands at 188 million DAUs as Snapchat finds itself in a battle with Instagram for consumers' eyeballs. Instagram has continued to copy Snapchat features, such as it did with Stories. The problem is that the public seems to feel that whatever Instagram copies from Snapchat, it does it better.

For the three month period from April through June, Snap's revenue rose 44% year-over-year to $262 million. That topped Wall Street forecasts of $250 million. And while those on the Street were expecting the company to report a loss of 17 cents a share, Snap reported a loss of 14 cents a share, again bettering Wall Street estimates.

Snapchat founder and Snap CEO Evan Spiegel blamed the decline in users on the redesign of Snapchat earlier this year. Users were so upset that a petition was started on Change.org to demand that the old UI be returned.

"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. 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."-Evan Spiegel, CEO, Snap

As unpredictable as ever, Wall Street ignored the drop in users and focused on Snap's better than expected financial performance. After the report was released, Snap's stock price rose slightly to $13.20 from the regular session's close of $13.12.

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