Not even DJ Khaled can save Snapchat at this point. It is being reported that over the last three months the once favorite social media app has lost about 3 million daily users.
Looks like Instagram is seriously eating Snapchat’s food and is one of the leading factors in the app’s downfall. The redesign that immediately turned off users and its constant issues with the Android app didn’t help its cause either and contributed to the mass exodus. User growth for the app is slowed down last quarter, and the spectacles which they hope would fly off shelves failed to latch on with users which led to the head of Snap Lab to step down due to restructuring. Snap Inc does plan to release a new and smaller version called Spectacles 2 in hopes of a different result.
Now as of yesterday (August 7th), reports show the apps number of daily users have dropped from 191 million in the first quarter of the year, to now 188 million users. This news marks the first time in the company’s history that its user count has dropped. It’s not all bad news, Snap Inc CFO Tim Stone says active users are now actually up to 100 million in US and Canada, and the overall revenue is $242 million which is a 44 percent year-over-year increase and an 11.9 percent bump in from the previous quarter.
In a prepared statement, CEO Evan Spiegel spoke on the numbers and put most of the blame on the app’s redesign and stated:
“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 also spoke about Snapchat’s issues with it’s Android app:
“Even though our iterative efforts to improve the existing application have helped increase new user retention on Android by nearly 20 percent since Q4 of 2016, we believe that rewriting the application presents a big opportunity because it takes advantage of the latest Android capabilities and has a modularized structure that will make it easier for us to innovate in the future.:
Sounds good but will its recent updates such as new camera filters, group video chats and Harry Potter bitmojis and new spectacles work? Lets not also forget the impact of Kylie Jenner and Rihanna sharing their displeasure also hurt the app and the company’s value as well. They might want to get a big name on board to help with regaining its cool factor with the users that left the app. Cause as of right now Instagram is showing no signs of letting up at all.
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