Snapchat makeover doesn’t help
The redesign of the snapchat photo app, which was supposed to revive flagging growth, was not successful. In the past three months, only four million daily active users have been added.
Analysts had rather expected seven million. The head of developer snap, evan spiegel, blamed the problems in part on the redesign – but sees "signs of stabilization" at least for the iphone app. Snap had 191 million daily active users at the end of the quarter.
Snap shares temporarily lost about a fifth of their value in early U.S. Trading on wednesday, falling to their lowest level ever at 11 dollars. The paper had been listed in march 2017 for 17 dollars.
Snap was able to increase sales by 54 percent year-on-year to 230.67 million dollars (191.73 million euros) – but here, too, the market had expected more. The company also announced significantly lower growth rates for the current quarter. With a loss of 385.8 million dollars, snap is still deep in the red. In the previous year’s quarter, a huge loss of 2.2 billion dollars had been accumulated, partly in connection with the borsengang.
Snapchat originally became known for photos that disappeared on their own, but it also wants to become a platform for media content more strongly. Snapchat also pioneered the "story" feature, which allows users to share photos and videos with friends for a day. Facebook copied them with success in its competitor apps like instagram.
The redesign of the snapchat app was intended to simplify the snapchat user interface, which is often criticized for being confusing – with the aim of attracting slightly older users in addition to the core audience of teenagers. Personal contributions were also separated from media content – a change that facebook also tested but rejected.
But the new app was not well received. Die-hard users criticized it, activity on the platform declined after the launch. There is still a lot to do to optimize the new design, spiegel said – and defended it at the same time. By separating the media content, friends no longer had to fight for attention with professional videographers. And older users can keep snapchat better with the new design.
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