Snap declined to estimate user growth for next quarter, but noted that third-quarter earnings have historically "trended down" for the company.
Snap has been working to convince big advertisers to spend more of their budgets on Snapchat ads and reach the app's base of mainly 18-34-year-old users, and it beat analyst revenue forecasts as it drew in more worldwide and small business advertisers.
The deal, in which he purchased shares for an average price of $11 each, was finalised in May, he said. The app lost 3 million daily users, a decrease of 2% compared to the previous quarter.
At the end of a savage technology-sector earnings season, which saw Twitter and Facebook badly mauled after reporting poor numbers, Snapchat's anaemic performance was explained away as a redesign issue by CEO Evan Spiegel in prepared remarks with analysts.
Snap has been redesigning its app to encourage users to interact with more of its ad-supported videos. 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.
Saudi Arabia's Prince Alwaleed bin Talal, a well-known tech investor, announced on Tuesday that he had invested $250 million into the company, in return for a 2.3% stake.
Snap shares have dropped 10 percent since the beginning of the year.
A Snapchat redesign in February aimed at encouraging users to watch more videos prompted user protests after they found it more hard to find the content they wanted. Despite the decline in active monthly users, Snapchat saw its revenues jump to $262.3 million, up by 44 percent from the same quarter a year ago.
Investors, it seems, are unsure what to make of Snap's mixed results.
Advertising revenue is up 48 percent year-over-year as well, making the platform all the more enticing to the potential advertiser.
Snap also released guidance for Q3 2018 for the first time. It reported an adjusted loss of 14 cents a share, which was better than the average analyst expectations of a 17 cents a share loss, according to surveys by Thomson Reuters.