Economy

Redesigned Snapchat sees users drop by 3 million for quarter

Redesigned Snapchat sees users drop by 3 million for quarter

It is the latest social media company to disappoint investors after Facebook and Twitter also saw a decline in users. 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.

Snapchat's controversial redesign has sent users running for the exits.

The deal, in which he purchased shares for an average price of $11 each, was finalised in May, he said. Snap CEO Evan Spiegel blamed the decline on "the disruption caused by our redesign" in prepared remarks for Tuesday's earnings call.

The company has struggled with a rocky redesign widely criticized by users.

Though the company said user counts may fall even further, it didn't provide insights about the recently released Spectacles (which CNET liked but didn't love).

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Prince Alwaleed bin Talal, the Saudi investor, disclosed a $250 million stake in Snap last night as the company reported an unexpected decline in users of its Snapchat app. Much larger rival Facebook has replicated Snapchat features such as virtual animal ear filters for selfies and the "stories" format for sharing content.

However, there was positive news elsewhere in the results as parent company Snap Inc reported revenue of 262.2 million dollars (£202.6m), up 44% on this time previous year and above analyst expectations. It is also an increase of 13.6pc on the results from Q1 2018. This translates to a net loss of $0.14 per share, compared to net losses of $0.16 per share in Q2 of 2017. That has come at the cost of the premium feel Snap had tried to ascribe to its ads, but given overall sales a jolt by attracting more advertisers. After initially shooting up more than 10 percent following the unexpected revenue beat, it then dipped to below its closing price before ticking back up slightly.

Snapchat is popular for private messaging, but most of the ads Snap sells accompany videos that are shared with a wider audience.

But the change has made it more hard for Snapchat to distinguish itself from other video-heavy apps and draw premium prices.