Snapchat Lost 3 Million Users in Q2 2018, Even As Revenue Climbed
Aug. 8, 2018In broad terms, Snapchat recorded a revenue growth of 44% on a year-on-year basis, all the while minimizing the losses incurred by the company. Following Snap’s revelation of the company’s Q2 financial performance, Snapchat’s stock went up by 11% in after-hours trading. But all that growth came at a cost, as Snapchat also lost 3 million daily active users in just a single quarter.
Even the Snapchat chief admitted the eroding effect of the redesign in his earnings call remark, pointing that ‘This was primarily driven by a slightly lower frequency of use among our user base due to the disruption caused by our redesign. 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 our community’.
On the other hand, Snapchat’s archrival, Instagram continues to grow by leaps and bounds. Even the Instagram Stories feature, which was once lambasted for being a Snapchat rip-off, now has over 400 million users, a number which is more thandoublethat of Snapchat’s entire user base. It now remains to be seen how Snapchat bounces back and regains the millions of users it lost.
