Published: Wed, August 08, 2018
Finance | By Loren Pratt

Snapchat drops daily users for first time after controversial redesign

Snapchat drops daily users for first time after controversial redesign

That's despite a drop in active users-a first for the company. Snap said new user retention for people over 35 has grown more than 8% since redesigning the app earlier this year. Losses, adjusted for stock option expense and amortization costs, came to 14 cents per share.

Snap lost about 1 million users in each of its three geographic reporting regions: North America, Europe and rest of world.

Snap also has been redesigning its app to encourage users to interact with more of its ad-supported videos.

Snap is battling for relevance against Facebook-owned Instagram, and many analysts had expected active daily user numbers to be flat.

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

Investors sent Snap's stock on a rollercoaster ride Tuesday following the company's Q2 2018 earnings release: Share prices for Snapchat's corporate parent gained more than 10% immediately following the release of news that the company beat analysts' revenue and earnings estimates, and that Saudi prince Alwaleed bin Talal had acquired a 2.3% stake in the company with a $250 million investment.


His investment comes about three years after he met Snap chief executive Evan Spiegel and chief strategy officer Imran Khan, when the two executives visited Saudi capital Riyadh. Snap in first-quarter results said it would again adjust how it presents content.

Earnings from Facebook and Twitter Inc in recent weeks spooked social media investors by showing issues around data privacy, abusive content and phony accounts were weighing on user growth.

The earnings report didn't have any specific sales figures for its latest Spectacles hardware, though it did report $2 million in non-advertising revenue. Wall Street had forecast a loss of 17 cents per share for the second quarter.

However, there was positive news elsewhere in the results as parent company Snap Inc reported revenue of 262.2 million dollars (£202.6m), up 44% on this time previous year and above analyst expectations.

Offering more ways for advertisers to purchase ads has boosted revenue this year by drawing small brands looking for cheap commercial time.

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