Snapchat user growth stagnant amid redesign backlash

Snapchat's redesign hasn't done much to help the company.Snap, the parent company of Snapchat, said Tuesday th...

Posted: May 2, 2018 10:03 AM
Updated: May 2, 2018 10:04 AM

Snapchat's redesign hasn't done much to help the company.

Snap, the parent company of Snapchat, said Tuesday that it added just four million users during the first three months of 2018 amid a backlash to a significant app redesign.

The redesign was supposed to attract new users amid concerns of lackluster audience growth.

Instead, growth slowed. The service had 191 million daily active users during the quarter, up from 187 million at the end of last year, or just a 2% increase. User growth rose 5% in the last quarter of 2017 and 3% in the third quarter.

By comparison, Facebook said Tuesday that WhatsApp's Snapchat clone now has 450 million daily users.

Related: Snapchat faces backlash after app redesign

The daily active users figure also came in below Wall Street's expectations of 194 million. GBH Insights called the metric "disappointing" in an investor note, and said it speaks to Snap's user growth problem, which is a "major black cloud" over the company.

Snap stock fell more than 15% in after hours trading following the earnings report.

Revenue jumped 54% to $230.7 million, but came in below analysts' expectations. Snap said the redesign impacted its revenue by "disrupting user behavior" and creating some apprehension among its advertisers.

"We are already starting to see early signs of stabilization among our iOS users as people get used to the changes, but still have a lot of work to do to optimize the new design, especially for our Android users," CEO Evan Spiegel said on a call with investors. "We are now focused on optimizing the redesign based on our ongoing experimentation and learning."

He also said the company has seen increased new user retention among older people.

Related: Snapchat takes another swing at Spectacles

Earlier this year, Snapchat redesigned its app to separate content posted by friends from content posted by publishers and celebrities.

The update, which rolled out to most users during the first quarter, was intended to make the interface less confusing.

But it ended up setting off an outcry among users. A Change.org petition asking the company to remove the redesign now has more than 1.2 million signatures.

Snapchat was also panned by some of its most prominent users after the redesign. Kylie Jenner, a reality TV star, threatened to quit the app in February, causing the stock to fall. Chrissy Teigen, a model and TV personality, said she stopped using the service in March.

Snapchat has since made some tweaks to the redesign and will roll out an update that moves Stories from friends to the same page as posts from celebrities and brands once again.

Lafayette
Clear
45° wxIcon
Hi: 49° Lo: 37°
Feels Like: 38°
Kokomo
Partly Cloudy
40° wxIcon
Hi: 46° Lo: 34°
Feels Like: 32°
Rensselaer
Partly Cloudy
37° wxIcon
Hi: 42° Lo: 34°
Feels Like: 29°
Lafayette
Partly Cloudy
45° wxIcon
Hi: 43° Lo: 37°
Feels Like: 38°
Danville
Partly Cloudy
48° wxIcon
Hi: 49° Lo: 39°
Feels Like: 42°
Frankfort
Clear
41° wxIcon
Hi: 49° Lo: 37°
Feels Like: 34°
Frankfort
Clear
41° wxIcon
Hi: 45° Lo: 33°
Feels Like: 34°
Monticello
Partly Cloudy
39° wxIcon
Hi: 46° Lo: 35°
Feels Like: 32°
Monticello
Partly Cloudy
39° wxIcon
Hi: 46° Lo: 35°
Feels Like: 32°
Logansport
Partly Cloudy
36° wxIcon
Hi: 44° Lo: 33°
Feels Like: 29°
Mild Conditions Continue Wednesday
WLFI Radar
WLFI Temps
WLFI Planner

WLFI is promoting fire safety with FREE smoke detectors

 WLFI and several local fire departments are helping with your fire safety this winter. CLICK HERE. 

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 657037

Reported Deaths: 12450
CountyCasesDeaths
Marion901321624
Lake48105871
Allen35552632
Hamilton31839393
St. Joseph29538510
Elkhart25261412
Vanderburgh21115377
Tippecanoe19765197
Johnson16242352
Porter15838267
Hendricks15723296
Clark11843179
Madison11672314
Vigo11503228
Monroe10248158
Delaware9788178
LaPorte9720194
Howard9017194
Kosciusko8514107
Bartholomew7373147
Warrick7369146
Hancock7362128
Floyd7139164
Wayne6586188
Grant6395157
Morgan6040124
Boone603388
Dubois5868111
Dearborn540266
Henry539492
Marshall5390104
Cass537199
Noble506775
Jackson462063
Shelby458490
Lawrence4154111
Gibson399681
Harrison395160
Clinton392353
DeKalb382078
Montgomery381583
Knox354484
Miami354063
Whitley346235
Huntington338176
Steuben335955
Wabash328775
Putnam325959
Ripley325161
Adams320249
Jasper312943
White295351
Jefferson292770
Daviess284296
Fayette270255
Decatur269388
Greene259978
Posey259731
Wells255374
Scott248446
LaGrange240170
Clay238944
Randolph225076
Spencer215830
Jennings213544
Washington207727
Sullivan202038
Fountain200341
Starke185950
Owen181652
Jay177328
Fulton176437
Carroll175618
Perry172435
Orange170450
Rush163922
Franklin158335
Vermillion158040
Tipton145441
Parke137915
Pike127232
Blackford120027
Pulaski105643
Newton96431
Brown94639
Benton91113
Crawford90113
Martin80114
Switzerland7507
Warren74612
Union66810
Ohio52711
Unassigned0425

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events