Friday, 17 August, 2018

Snapchat's much-hated redesign scared advertisers and "disrupted" behavior

WATCH: Snapchat to make more changes to the app Snap's sales signal it may not be snapping back anytime soon
Andy Castillo | 02 May, 2018, 02:05

Snap Inc. on Tuesday said revenue rose 54% in the first quarter from a year ago, but that missed analyst estimates and fell almost 20% short of the previous quarter as efforts to wrest a larger share of advertisers' budgets were impeded by Facebook Inc. and Alphabet Inc.'s Google.

Snap stock is already down more than 16% after-hours following the earnings report.

Snap is in trouble again, after today (May 1) reporting weak revenue and user growth for its first quarter, and blaming the shortcomings on a much-criticized Snapchat redesign. User growth rose 5% in the last quarter of 2017 and 3% in the third quarter.

Revenue stood at $230.7m (£169.4m) in the first quarter of this year, up 54 per cent on last year thanks to the grow of Snap Ads.

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The criteria we used for a correct pick was either the team and the player matching up or the player and the pick. Not exactly a ringing endorsement, which could give some indication about what teams think of Bryant's future.

Snap reported having 191 million daily active users, an increase of 4 million from the fourth quarter but below estimates 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.

"As we have mentioned on our past two earnings calls, a change this big to existing behavior comes with some disruption, especially given the high frequency of daily engagement of our community", CEO Evan Spiegel said.

"We are now focused on optimizing the redesign based on our ongoing experimentation and learning", he said.

Earlier this year, Snapchat redesigned its app to separate content posted by friends from content posted by publishers and celebrities.

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