STREAMING NOW: Watch Now

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 9:03 AM
Updated: May 2, 2018 9:04 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.

Minnesota Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 20573

Reported Deaths: 878
CountyConfirmedDeaths
Hennepin6918534
Ramsey231697
Stearns192312
Nobles14572
Anoka116455
Dakota105935
Olmsted55110
Washington50626
Kandiyohi4541
Clay36623
Rice3652
Scott3462
Wright2401
Sherburne2081
Todd1970
Benton1662
Carver1612
Mower1501
Steele1400
Martin1245
Blue Earth1121
St. Louis11113
Pine850
Freeborn840
Winona7715
Carlton730
Nicollet683
Cottonwood620
Polk582
Otter Tail550
Itasca527
Goodhue522
Watonwan500
Chisago481
Dodge430
Meeker420
Crow Wing421
Le Sueur411
Chippewa400
Jackson390
Morrison380
Murray350
Becker320
Lyon310
Douglas290
McLeod260
Isanti250
Waseca240
Rock210
Unassigned199
Fillmore171
Mille Lacs161
Wabasha160
Swift150
Sibley120
Beltrami120
Wilkin113
Norman110
Kanabec111
Cass113
Faribault110
Brown112
Pipestone100
Marshall80
Pennington70
Pope70
Aitkin60
Wadena60
Yellow Medicine50
Koochiching50
Lincoln50
Mahnomen51
Renville50
Lac qui Parle30
Red Lake30
Big Stone30
Redwood30
Traverse30
Grant20
Houston20
Clearwater20
Hubbard10
Kittson10
Lake10
Roseau10

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 17227

Reported Deaths: 456
CountyConfirmedDeaths
Polk3714108
Woodbury255524
Black Hawk167639
Linn92775
Marshall86611
Dallas84914
Johnson5987
Muscatine54339
Wapello5004
Crawford4772
Tama39023
Louisa3347
Scott3319
Dubuque31916
Jasper25616
Buena Vista2310
Pottawattamie2106
Sioux1990
Washington1798
Allamakee1184
Wright1170
Plymouth1080
Warren1060
Story941
Poweshiek888
Bremer676
Henry611
Clinton601
Boone540
Des Moines531
Mahaska526
Cedar451
Guthrie433
Taylor370
Benton371
Jones360
Monroe334
Iowa320
Clarke320
Osceola320
Shelby310
Buchanan310
Clayton303
Marion290
Webster271
Fayette260
Hamilton260
Madison241
Monona230
Cerro Gordo221
Lee220
Winneshiek210
Davis200
Lyon190
Grundy190
Harrison190
Floyd181
Jefferson150
Cherokee150
Butler150
Mills140
Delaware140
Humboldt130
Sac130
Greene130
Keokuk130
Hardin130
Howard120
Hancock120
Appanoose123
Audubon111
Jackson110
Cass110
Ida100
Page100
Clay100
Winnebago100
Carroll90
Van Buren80
Franklin80
Dickinson80
Adair80
Chickasaw80
Kossuth70
Emmet70
Lucas60
Montgomery60
Union60
Adams50
Ringgold40
Fremont40
Pocahontas40
Mitchell40
Palo Alto30
Worth30
Unassigned30
Calhoun20
Wayne10
Decatur00
Rochester
Clear
64° wxIcon
Hi: 80° Lo: 64°
Feels Like: 64°
Mason City
Overcast
64° wxIcon
Hi: 81° Lo: 64°
Feels Like: 64°
Albert Lea
Overcast
64° wxIcon
Hi: 79° Lo: 64°
Feels Like: 64°
Austin
Broken Clouds
66° wxIcon
Hi: 82° Lo: 66°
Feels Like: 66°
Charles City
Overcast
64° wxIcon
Hi: 81° Lo: 65°
Feels Like: 64°
Storms a brewin'
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Deciding on the return of prep sports in Iowa

Image

Sean Weather 5/24

Image

Minnesota campgrounds missing out on Memorial Day Weekend

Image

Minnesota places of worship to open this week

Image

MDVA to honor veterans virtually on Memorial Day

Image

Roosters base ball club of Rochester holds first practice

Image

Sean Weather 5/24

Image

Sean Weather 5/23

Image

Parks reopen in Rochester

Image

No summer sports for Belmond-Klemme

Community Events