The redesign of the photo app Snapchat which should revive the weakening growth, has failed. In the past three months, only four million daily active users were added. Analysts had expected more seven million.
The boss of the developer company snap, Evan mirror, blamed the redesign for the problems – but sees “Signs of stabilization” at least with the iPhone app. Snap had 191 million daily active users at the end of the quarter.
Snapchat development lags behind expectations
The snap stock fell in the pre-trade on Tuesday by more than 14 percent on good twelve dollars. She had been raised in the March 2017 for 17 dollars on the stock exchange.
Snap while increased sales compared to 54 percent to 230,67 million dollars (191,73 million euros) the year – but more was expected in the market. For the current quarter, the company produced significantly lower growth rates in Vista. Snap is further deep in the red with a loss of $385,8 million. In the same quarter a huge loss of $2.2 billion had accumulated, inter alia in the context with the IPO.
Core audience of Snapchat should be expanded
Snapchat was known originally with alone disappearing photos, wants to become the platform for media content but also strengthened. The transformation of the app should simplify the often confusing Snapchat-operation – with the aim to attract more older users in addition to the core audience of teenagers. Also, private contributions have been separated from media content.
The new app but not good arrived. Die-hard users criticized them, after the introduction of the activity went back on the platform. It give to do much to improve the new design, said mirror – and defended it at the same time. Due to the separation of media content’s friends would no longer compete for attention with professional filmmakers. And Snapchat better could keep up with the new design older users.