Snap is tanking after disappointing earnings

It might be a beautiful day in Venice, CA, but things at the beach-headquartered Snap are not so sunny at the moment.

Snap reported disappointing revenue in its Q1 earnings report on Tuesday — and the market reacted like the volatile, fickle beast that it is.

Snap missed investor expectations big time, reporting a quarterly revenue of $231 million. The expectation was $244.5 million, according to a Thomson Reuters consensus estimate.

And things aren't likely to improve any time soon. CEO Evan Spiegel said that Snap's growth is stalling.

"We are planning for our Q2 [revenue] growth rate to decelerate substantially from Q1 levels," CFO Drew Vollero said.

It's not a good look for Snap, especially in light of the optimism surrounding last quarter's successes. Q4 of 2017 came in with $286 million in revenue and 18 percent year over year user growth. There was hope that last quarter marked a turnaround for the company after the company's initial financial stumbles post-IPO.

But then, the redesign happened, and high-profile users and teens alike expressed anger with the new layout. Now, the app that insists it's a "camera company" is back to underwhelming investors.

"As we have mentioned on our past two earnings calls, a change this big to existing behavior comes with some disruption, especially given the high frequency of daily engagement of our community," Spiegel said. "We are now focused on optimizing the redesign based on our ongoing experimentation and learning."

We'll see if Kylie approves.

Correction: May 1, 2018, 6:38 p.m. PDT: This post has been corrected to attribute a quote about Snap's revenue growth rate to CFO Drew Vollero. It was originally misattributed to CEO Evan Spiegel.