Snapchat parent Snap reported this afternoon that during the second quarter, the messaging app lost three million daily active users. It also recorded a narrower loss per share than analysts expected. This is over 20pc lower than the previous quarter, when Snap lost $443,093.
Features that many used on a daily basis were moved to different parts of the app, causing confusion among its loyal users. According to Spiegel, new Snapchat users are primarily using Android, and it's been trying to completely rewrite its Android app for over a year now.
Snap executives told analysts that the redesign was the primary reason for usage slipping and that a European Union data protection law that spurred changes to user privacy terms had no material effect. "It has been approximately six months since we broadly rolled out the redesign of our application, and we have been working hard to iterate and improve Snapchat based on the feedback from the community", he said.
The company went public in March of 2017, and has suffered largely ugly numbers ever since. Critics in the past have anxious about Snap keeping user engagement up, keeping the users coming back and keeping them using the application, which is declining in some areas while growing in others, leading investors to boost the stock up in after hours trading although it has since levelled back to around the closing price.
The company has struggled with a rocky redesign widely criticized by users.
Snapchat responded with a few design tweaks to appease users, such as making it easier to find Stories.
"Snap has a major app redesign in process which remains one of the linchpins for future success and monetization, although it has encountered clear speed bumps on this front", said Daniel Ives, chief strategy officer at GBH Insights.
Prince Alwaleed bin Talal has acquired a 2.3 percent stake in Snapchat in a deal worth $250 million (SR950 million). Perhaps partly due to a recent investment of $250 million by Prince Al-Waleed Talal of Saudi Arabia.