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Snapchat Parent Snap Posts Its First Loss in Daily Active Users

08 August 2018

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. Also, overall revenue is now $262 million this quarter. They were last down about 1 percent.

The social media giant also revealed its net loss had fallen by 20% on the same period a year ago, down to 353.3 million dollars (£273m) from 443 million (£342.3m).

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. He made the $250 million investment on May 25.

The ephemeral social media company revealed in its latest earnings report that its daily active user count has dipped, attributing the decline to early frustrations with its new-look app. Chief Executive Evan Spiegel said in prepared remarks that the redesign was the primary reason for usage slipping, but he credited the changes for increasing viewership of key ad-supported content this year.

He also addressed the ongoing issues with the Android app by saying he hopes to bring the lessons it's learned from the iOS app over to the Android side of things. The company, which just marked the two-year anniversary of its own version of Stories, recently announced it had crossed 1 billion users.

"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. "We are learning a lot as we continue to iterate based on customer feedback", Spiegel said about the smart glasses. "When combined with our efforts in augmented reality, we believe Spectacles represent an exciting opportunity as we build towards a future where computing is overlaid on the world", he said.

Snapchat has more than 100 million monthly active users, the company said, even though that was typically a metric it never cared about.

Snapchat Parent Snap Posts Its First Loss in Daily Active Users