Snapchat's controversial redesign caused it to hemorrhage users

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But daily Snapchat users fell to 188 million in the second quarter from 191 million in the prior quarter, Snap said, which could heighten investor anxiety about how competition and privacy issues are affecting Snap and its peers.

Which doesn't sound too good, especially since the company just came out with the new, smaller Spectacles 2.

Yet, things are not all bad. The company for the first time offered a forecast for future revenue, indicating that it has a clearer understanding of its business potential, even after shifting strategies, cutting staff and cycling through managers.

Despite the fall in the number of users, the firm said revenues were up and its losses had declined in its second quarter.

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.

Prince Alwaleed Bin Talal, a businessman and a member of Saudi Arabia's royal family, announced Tuesday that he's acquired 2.3% of the class A shares of the messaging app maker. "Even though our iterative efforts to improve the existing application have helped increase new user retention on Android by almost 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", said Spiegel.

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However, concerns over data sharing and privacy have held up talks with at least one bank, sources told the Wall Street Journal . The social media company said it wouldn't use the bank data for ad-targeting purposes or share it with third parties.

Evan Spiegel, Snap's CEO, blamed much of the poor results on an unpopular redesign that was released six months ago that was so unpopular social media influences like Kylie Jenner openly expressed their disappointment.

"One of the most important things about the redesign is that we're surfacing the right content to the right people as quickly as possible", said Spiegel, noting the revamp has lead to an increase in users 35 and older sticking around longer, which has always been a hope for the company.

For the current quarter ending in October, Snap said it expects revenue in the range of $265 million to $290 million. Users spend an average of over 30 minutes on Snapchat every day, he added, and user retention for people older than 35 has increased more than 8 percent.

To smooth over the decline in daily users, Snapchat revealed monthly users for the first time in hopes of reinforcing its growth prospects with investors.

But some analysts on Tuesday brushed off Snap's user drop, saying that Snapchat always had more limited appeal than larger rivals.

Eleven of Snapchat's shows reached an audience of over 10 million users during the quarter, compared to seven shows in Q1.

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