Snapchat redesigns app to attract users

User growth in the last three months was well below what investment analysts expected

Snap is redesigning its disappearing-message app Snapchat in an attempt to reach a broader audience, going back to the drawing board as Wall Street clobbered it for another quarter of slowing user growth.

The Venice, California-based firm, whose March stock market debut was the hottest of any tech stock in years, reported revenue and user growth for the third quarter well below Wall Street expectations as it struggles to compete with Facebook Inc's Instagram.

Snap's shares tumbled as much as 20 per cent in after-hours trading, before paring losses to trade at $12.57. Snap went public at a price of $17 a