The Snapchat redesign results are in — a decrease of 3 million users but better than expected earnings, in a single quarter…
Snap, Inc., CEO Evan Spiegel thought overhauling the company’s flagship app would give advertisers a fresh start. It was also supposed to wow users. But, just after it rolled out, 1.2 users around the globe signed a petition, begging to undo the changes. Nevertheless, the digital space followed through with its plans. And, it resulted in a mixed bag.
Snapchat Redesign Lost 3 Million Users but Earnings Exceeded Expectations
Snapchat confirmed the move cost it a loss of 2 percent of its daily user base, falling from 191 million to 188 million in three months. Spiegel stated during yesterday’s earnings call the company does take users’ feedback seriously. “We feel that we have now addressed the biggest frustrations we’ve heard and are eager to make more progress on the tremendous opportunity we now have to show more of the right content to the right people.”
By contrast, the rest of the organization did much better than projected. It’s revenue rose by 44 percent year-over-year, jumping from $182 million in Q2 of last year to $262 million this year. Additionally, its stock is up and Saudi Prince Alwaleed Bin Talal acquired a 2.3 percent stake in the company.
Moreover, the company relaunched its Spectacles glasses in the past quarter. (Although, it didn’t offer much detail about how many units it sold.) But, Spiegel did note the company is “learning a lot” from customer feedback.
Overall, it’s still good news for the digital entity, even though rival Instagram is taking business away from the platform.