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Snap users drop for first time, but revenue climbs

Snap saw its first drop in daily users during the second quarter, a slip the company attributed to a ...

Posted: Aug 8, 2018 8:47 AM
Updated: Aug 8, 2018 8:47 AM

Snap saw its first drop in daily users during the second quarter, a slip the company attributed to a rocky app redesign. Still, its revenue climbed 44% year-over-year.

Snap, the parent of Snapchat, on Tuesday reported $262 million in revenue during the three months ending in June. It also recorded a narrower loss per share than analysts expected. Snap's stock soared as much as 11% in after-hours trading, only to fall again as the evening wore on.

Revenue aside, Snapchat's daily active user base declined for the first time. The app lost 3 million daily users, a decrease of 2% compared to the previous quarter. The company reported 188 million daily active users, falling short of analysts' expectations of about 193 million.

The disappointing user metric came as Snapchat faces mounting competition from Instagram. That platform, owned by Facebook, recently announced that more than 400 million people use its popular Story feature each day to post photos and videos that disappear after 24 hours.

Related: The worst may be over for Snapchat: Even a short seller likes it

Snap blamed the decline on the "disruption" caused by its 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," CEO Evan Spiegel said on a call with investors.

He said the company believes it has addressed users' biggest frustrations.

There was a small silver lining, too. Snap said new user retention for people over 35 has grown more than 8% since redesigning the app earlier this year.

Snapchat has experienced a string of declines after lackluster earnings reports since going public in March 2017. Snap stock was trading at just over $13 a share ahead of Tuesday afternoon's report, down from a 52-week high of $21.22.

The company has struggled with a rocky redesign widely criticized by users. The makeover was meant to attract new users while addressing concerns about lackluster audience growth and criticism that the app was too difficult to use.

Related: Instagram Stories is twice as popular as Snapchat

Snapchat responded with a few design tweaks to appease users, such as making it easier to find Stories. The company also grapples with heightened competition from Instagram, which regularly copies its most popular features.

"Snap has a major app redesign in process which remains one of the linchpins for future success and monetization, although it has encountered clear speed bumps on this front," said Daniel Ives, chief strategy officer at GBH Insights.

Other social media networks such as Facebook and Twitter recently reported disappointing earnings. Facebook suffered the single biggest wipeout in stock market history following its earnings report.

On Tuesday, Prince Alwaleed bin Talal also said he's acquired a 2.3% stake in Snapchat. He made the $250 million investment on May 25.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 468498

Reported Deaths: 9100
CountyCasesDeaths
Harrison31907468
Hinds30552569
DeSoto29532342
Jackson22868335
Rankin21016355
Lee14393214
Madison13961263
Jones13053215
Forrest12879231
Lauderdale11244292
Lowndes10148171
Lamar9972122
Pearl River8569208
Lafayette8008136
Hancock7110107
Oktibbeha6764117
Washington6756146
Neshoba6350200
Monroe6304156
Warren6267159
Panola6036122
Pontotoc599292
Bolivar5960143
Marshall5917115
Union558885
Pike5424133
Lincoln5192127
Alcorn509388
George454766
Scott447392
Leflore4377138
Tippah431780
Itawamba429192
Prentiss429074
Copiah423883
Simpson4238108
Wayne419663
Tate418999
Adams4174109
Yazoo411486
Sunflower4057104
Covington404891
Marion399699
Leake389784
Coahoma385996
Newton360273
Grenada3489100
Stone342657
Tishomingo320987
Attala318285
Jasper308261
Winston298191
Clay282672
Chickasaw277464
Clarke271784
Holmes257685
Calhoun256939
Smith241546
Yalobusha215447
Tallahatchie213849
Walthall203457
Lawrence202431
Greene202045
Perry195053
Amite191251
Webster191141
Noxubee173437
Montgomery168652
Jefferson Davis164041
Carroll158936
Tunica146533
Benton137531
Kemper136538
Claiborne124134
Choctaw123824
Humphreys122036
Franklin114127
Quitman100925
Wilkinson98335
Jefferson85832
Sharkey61620
Issaquena1916
Unassigned00

Alabama Coronavirus Cases

Cases: 757893

Reported Deaths: 12784
CountyCasesDeaths
Jefferson1082301712
Mobile694251158
Madison47738562
Baldwin35347420
Shelby34758281
Tuscaloosa32576495
Montgomery32249645
Lee21576200
Calhoun19621363
Morgan19061307
Etowah18363413
Marshall17028252
Houston15881337
St. Clair14724270
Limestone13908178
Elmore13812239
Cullman13756228
Lauderdale12909263
Talladega12124200
DeKalb11705220
Walker10047303
Autauga9371119
Blount9272146
Jackson8970132
Coffee8550150
Colbert8229160
Dale8162142
Escambia632298
Tallapoosa6255165
Covington6214153
Chilton6152128
Russell586753
Franklin558292
Chambers5155127
Dallas4569173
Marion4490114
Clarke447070
Pike439188
Geneva415999
Lawrence4002101
Winston399982
Bibb388975
Barbour334667
Marengo317778
Monroe306844
Butler305878
Pickens296166
Henry288550
Randolph288255
Hale282981
Cherokee275649
Fayette268569
Washington241844
Crenshaw226962
Clay219260
Macon211154
Cleburne205746
Lamar184638
Conecuh173337
Lowndes167856
Coosa160031
Wilcox153033
Bullock145642
Perry132430
Sumter122635
Greene117941
Choctaw71925
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