Snapchat lost 3m daily users last quarter
Snap, Inc shared its latest quarterly financial results, showing the first ever quarterly decline in daily active users (DAUs) since Snapchat first launched.
Indeed, Snapchat ended June with 188 million DAUs - down three million quarter-on-quarter, even if they were up by 15 million year-on-year. Q2 was when Snapchat was hoping to enjoy a boost in usage thanks to its new app design. And CEO Evan Spiegel explained the loss with “the disruption caused by our redesign”. He said:
We have been working hard to iterate and improve Snapchat based on the feedback from our community. 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.
Snap’s financial metrics are actually good: its revenues were up 44% year-on-year to $262m, while its net loss narrowed from $443m in Q2 2017 to $353m in Q2 2018. And Prince Alwaleed Bin Talal Bin Abdulaziz Al Saud has acquired a 2.3% stake in Snap for around $250m through his Kingdom Holding Company (the same company that has just taken a significant stake in Deezer).