Snap (SNAP) reported its first-ever quarterly report after the bell on Wednesday. And it disappointed big time. Shares were down more than 24% on underwhelming daily active user growth and a miss on revenue.

Snap had 166 million users in Q1, which represents a 5% growth rate, falling short of analysts’ estimates of 168 million. It brought in $149.6 million in revenue, compared to the $158.6 million the Street was expecting. While its growth in the US is lackluster, it’s even worse in one major region: what Snapchat calls “rest of world,” every continent except North America and Europe.

SNAP’S PLAN (OR LACK THEREOF) IN ‘REST OF WORLD’

“By definition, Snap is nearing capacity with millennial population user growth. Where are they going to find other millennials around the world? [CEO] Evan [Spiegel] needs to come out with a vision, a specific strategy regarding what their international plan will look like,” said Eric Kim, managing partner at venture capital firm Goodwater Capital.

Last month, Spiegel came under fire (and shares took a tumble) on a report from a former employee that Spiegel said the app is for rich folks, not for “poor” countries like Spain and India. The report sparked a movement called #UninstallSnapchat.

“This supposed comment created huge backlash not just outside of the userbase but actual users. This millennial population is really conscious of doing good, of being mission-oriented, and when you see companies like Snap making these comments, it does have an impact,” Kim said.

Even though Spiegel has denied this allegation, it illuminates a glaring problem for Snap: it’s not flourishing abroad. Investors were hoping for an explanation or a potential strategy for developing countries or markets outside of its core audience during the conference call.

But analysts were left without any answers.

‘CONNECTIVITY ISSUE’

During the company’s first-ever conference call, Spiegel did little to dispel the notion that it’s neglecting emerging markets. His comments suggested Snap remains laser-focused on North America and Europe.

“I think the connectivity issue is a real problem in the developing world. In certain developing world markets, people tend to use their WiFi at home or in an internet cafe…What that means is you can’t use Snap to communicate in the moment, really. That turns Snap into much more of a broadcast, lean back kind of service. …The way that our service works is by empowering this visual communication, and that’s just really tough if you don’t have cell service wherever you go,” he said.

Rather than coming up with a solution to penetrate these markets, he repeatedly blamed the company’s failure to reach consumers in developing countries on a lack of connectivity.