Snapchat's new design is driving users away in bunches

Share
Snapchat's new design is driving users away in bunches

On Tuesday, Prince Alwaleed bin Talal also said he's acquired a 2.3% stake in Snapchat. The company has not been growing well for some time now, and now for the first time is losing daily active users, dropping from 191 million in the first quarter of the year, to 188 million in the last quarter.

However, there was positive news elsewhere in the results as parent company Snap Inc reported revenue of 262.2 million dollars (£202.6m), up 44% on this time past year and above analyst expectations. Critics in the past have anxious about Snap keeping user engagement up, keeping the users coming back and keeping them using the application, which is declining in some areas while growing in others, leading investors to boost the stock up in after hours trading although it has since levelled back to around the closing price.

Snapchat rolled out a massive redesign to its app in November of past year that stirred quite a bit of controversy.

The drop in daily active users is an unfortunate turn for the company, as it struggled with a tepid reaction to its app redesign late past year as well as continuing problems with its Android app.

For the current quarter ending in October, Snap said it expects revenue in the range of $265 million to $290 million.

Snap's CEO Evan Spiegel blames the two percent decline in daily active users to "the disruption caused by our redesign".

The platform has been under pressure from Facebook's line-up of apps, which have aggressively competed with Snapchat for millennial social media users in recent years. Analysts had expected Snap's user count to stay roughly the same in the second quarter after it rose by about 2% in the first quarter. "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 the community", he said.

Snap lost about 1 million users in each of its three geographic reporting regions: North America, Europe and rest of world. It is also an increase of 13.6pc on the results from Q1 2018.

The Venice, California-based company said it had a loss of 27 cents per share.

Share

Advertisement

Related Posts

Liverpool beat Torino in final pre-season friendly
I didn't need the final proof in and around the World Cup or in last season". "The goalkeeper situation has given everyone a massive lift, Liverpool support wise".

Trump administration announces $22b in fresh tariffs on China
The duties are part of a broader round of tariffs on $50bn worth of goods the United States announced in March. The new list covers products such as semiconductors, electronics, plastics, and railway equipment.

Great white shark snaps at MA biologist's feet
As the top shark expert in Massachusetts, Greg Skomal is used to up-close-and-personal experiences with great whites. Beachgoers are being urged to exercise caution due to at least one shark lurking in the area.

Ollie Pope plans to replicate Curran’s class in Test arena
The 30-year-old also dropped a chance to dismiss Virat Kohli in the first innings and the visitors' skipper went on to score 149. Malan scored 28 runs across both innings for England as the hosts secured a thrilling 31-run victory against India .

Angelina Jolie seeks 'meaningful' child support from Brad Pitt
Brad Pitt is hitting back hard at Angelina Jolie's accusations that he hasn't paid a dime in child support for their six kids. Jason LaVeris via Getty Images Angelina Jolie and Brad Pitt pictured in 2015 during their last public appearance as a couple.

Elon Musk tweets he is taking Tesla private at $US420
With $2.2 billion in cash on hand at the end of the second quarter, Tesla would have enough to operate until the end of the year. The broader timing of the tweet is also suspect, given Musk's recent public denunciations of Tesla's (equally vocal) critics.

China hits back at United States with $60bn tariff threat
Reportedly, Trump claimed on June 15, that the USA would introduce tariffs by 25 percent for imported from China commodities. That prompted concern among American companies that retaliation might expand to disrupting their operations in China.

Ontario government to announce buck-a-beer plan
Effective Aug. 27, Ontario's government will lower the minimum price floor to $1 for any beer with an alcohol volume below 5.6%. Ford has said buck-a-beer will be available in the province by August 27, in time for Labour Day weekend.

Kroenke wins £1.78 billion battle for Arsenal after Usmanov agrees to sell
Kroenke first took a share in Arsenal in 2007, and has gradually grown his share in the club, which now stands at 67%. Usmanov also first became an Arsenal shareholder in 2007. "This news marks a terrible day for Arsenal Football Club".

Samsung Will Use These Freebies to Sweeten the Deal on Note 9
This one feature that could come in very handy for many people, the new Galaxy Note 9 could really be a PC in your pocket. If it's legit, the offer will likely apply to new lines only, with savings paid back as bill credit over 24 months.

© 2015 ExpressNewsline. All Rights reserved.