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.

Cases: 697182

Reported Deaths: 8169
CountyCasesDeaths
Hennepin1427711862
Ramsey59431953
Dakota53075503
Anoka48987486
Washington31228315
Stearns25428242
St. Louis20900339
Scott20039146
Wright18954165
Olmsted16269112
Sherburne13840106
Carver1237052
Clay936897
Rice9278125
Blue Earth888747
Crow Wing8070102
Kandiyohi753292
Chisago733858
Otter Tail689897
Benton6653102
Mower576238
Winona564852
Goodhue560581
Douglas549484
Beltrami534672
Itasca532572
Steele520221
McLeod519665
Isanti500470
Morrison478263
Nobles455650
Becker455060
Polk444575
Freeborn438142
Lyon402454
Carlton399160
Nicollet387848
Pine384026
Mille Lacs363860
Brown358244
Cass355536
Le Sueur348230
Todd333034
Meeker314049
Waseca297626
Martin271633
Wabasha25005
Dodge24865
Hubbard241941
Roseau238224
Houston211217
Redwood206642
Fillmore204510
Renville204248
Pennington196022
Wadena192927
Faribault184925
Sibley180310
Cottonwood179424
Chippewa173439
Kanabec168329
Aitkin159239
Watonwan157211
Rock142919
Jackson136112
Pope13378
Yellow Medicine128720
Pipestone126126
Koochiching125119
Swift120319
Murray117610
Stevens110011
Clearwater109218
Marshall107619
Lake94321
Wilkin91014
Lac qui Parle89424
Mahnomen7339
Big Stone7024
Grant6938
Norman6829
Lincoln6724
Kittson54222
Unassigned52893
Red Lake5067
Traverse4375
Lake of the Woods4204
Cook2150

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 443535

Reported Deaths: 6420
CountyCasesDeaths
Polk69441683
Linn26618363
Scott23312265
Black Hawk19397338
Woodbury17483233
Johnson1698692
Dubuque14775221
Pottawattamie13369186
Dallas13048102
Story1211448
Warren707893
Webster6479103
Cerro Gordo6370105
Clinton635898
Des Moines618084
Muscatine5985109
Marshall586981
Sioux547676
Jasper532076
Lee529084
Wapello5230128
Unassigned50150
Buena Vista479442
Marion464086
Plymouth442185
Henry351341
Jones341159
Bremer331365
Washington330454
Crawford326844
Carroll326553
Benton325756
Boone318636
Mahaska282754
Dickinson276547
Kossuth257471
Clay255629
Jackson253844
Tama246073
Hardin244547
Buchanan244238
Delaware240143
Cedar228025
Fayette227945
Page225724
Wright221741
Winneshiek219237
Hamilton216752
Harrison205476
Madison199920
Clayton199758
Floyd195742
Butler191936
Poweshiek188837
Mills188225
Iowa185927
Cherokee184740
Allamakee181152
Jefferson178238
Lyon178041
Calhoun172213
Hancock170336
Winnebago170131
Cass164356
Louisa161651
Grundy161335
Appanoose158149
Shelby156539
Emmet153241
Franklin152224
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Union149937
Sac147922
Mitchell146143
Guthrie142132
Chickasaw141618
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Keokuk121332
Monroe118733
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Ida109838
Davis105025
Greene103012
Pocahontas102623
Monona99034
Lucas98523
Adair97734
Worth9558
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Ringgold63027
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