Snapchat Fighting To Reduce Loss Of Active Monthly Users

The reparations of the app redesign and the increasing competition from Instagram has resulted in a continuous loss of users of Snapchat.

For the three months ending in September, there has been a drop of 1 per cent compared to the previous quarter in the number of daily active users of Snapchat as announced by the parent company of Snapchat – Snap. The number of daily active users in third quarter was 186 million which was lower than the expectations of analysts at 187.5 million.

As a public company, this is the second time Snapchat has lost daily active users. The company had got listed in March 2017. The app had lost 3 million daily users during the second quarter of this year.

the daily user decline was primarily among Android users, said Snap CEO Evan Spiegel during a call with analysts.

“We have been developing a completely new version of our Android application to be lightweight, modular, and performant,” he said. “The Android community represents a global growth opportunity for us and we are making good progress testing the application in select markets.”

The company said that a similar trend of losing of daily users would likely continue into the fourth quarter as well.

There were however some silver lining in the third quarter for the company. The company beat analysts’ expectations for revenue growth with a growth rate of 43 per cent at $298 million. The loss per share reported in the quarter was 12 cents as reported by Snap which was lower than whet the Wall Street had projected. There was a drop of 12 per cent in extended trading in the shares of the company after rising initially on the quarterly results.

Despite rival Instagram copying a number of the features of Snapchat such as disappearing photos and videos, the competition offered by Instagram continues to be a cause of concern for Snap. The company is also fighting user backlash of a redesign of its app. The criticism of it the new interface is that the app was too confusing to use. The changes were made to attract more users because of its slow audience growth. The redesign was instead panned by its core younger users.

“Overall, I think it’s a win that Snapchat is even in this position after its disastrous redesign earlier this year,” said Jessica Liu, senior analyst at research firm Forrester. “Snapchat’s biggest issue is it lacks appeal beyond its core user base and has an unclear vision on how to break out beyond the under 30 demographic in a very crowded social media landscape.”

Spiegel acknowledged that the company “rushed our redesign, solving one problem but creating many others” according to a recent memo to employees which was obtained by Cheddar.

“In our excitement to innovate and bring many new products into the world, we have lost the core of what made Snapchat the fastest way to communicate,” Spiegel added.

(Adapted from CNN.com)

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