Snap’s Chatting Away to Figure Out Struggles with User Exodus

Looks like Snapchat continues to lose users from backlash from their redesign and growing competition. Which factor do you think it is?

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Total Votes : 3

Scroll down to see how people across America voted.

It’s no secret that Snapchat is not the same anymore.

In fact, the app continues to lose users in an ongoing backlash to its redesign and rising competition from Instagram.

Statistically speaking, Snap (SNAP), the parent company of Snapchat, has reported 186 million daily active users for the three months ending in September. It’s a decline of 1% compared to the previous quarter and below analysts’ expectations of 187.5 million.

Snap went public back in March 2017 and in the second quarter of this year, the app lost 3 million daily users. Interestingly enough, the daily user decline was primarily among Android users, according to CEO Evan Spiegel.

He noted that, “We have been developing a completely new version of our Android application to be lightweight, modular, and performant,” stressing that the Android community is an important demographic for the company.

On the bright side, revenue grew 43% to $298 million, exceeding analysts’ expectations.

One of the company’s biggest competitors is, not surprisingly, Instagram. The social media platform has copied many of Snapchat’s most popular features, such as disappearing photos and videos, known as “stories.”

Snapchat also still navigates criticism to its questionable app redesign. The new interface had hopes of attracting more users amid slow audience growth and complaints that the app was too confusing to use. Instead, it was slammed by its core younger users.

“Overall, I think it’s a win that Snapchat is even in this position after its disastrous redesign earlier this year,” senior analyst at research firm Forrester, Jessica Liu noted. “Snapchat’s biggest issue is it lacks appeal beyond its core user base and has an unclear vision on how to break out beyond the under 30 demographic in a very crowded social media landscape.”

Not only has there been a major decline in app users, but Snap has also seen an exodus of executives over the past year, such as VP of Marketing Steve LaBella and Chief Strategy Officer Imran Khan.

Recently, Snap has announced the hire of two new executives: Jeremi Gorman as chief business officer, overseeing global business solutions, online sales and customer operations; and Jared Grusd as chief strategy officer responsible for partnerships, content and business development.

Analyst at Pivotal Research, Brian Wieser writes on a positive note that, “It is not too late for management to find ways to reverse recent usage trends and generally improve monetization regardless of those usage trends. With ongoing experimentation, we have some faith that they should be able to do both.”

Wieser also added that Snap could potentially become an attractive candidate to go private at its current stock price.

A decline in Snapchat users has been an ongoing thing due to backlash from their redesign and growing competition. What do you think is behind it? Read more about this story on CNN here.


Here’s how people on the Zip app are weighing in on this all over the country!

Looks like Snapchat continues to lose users from backlash from their redesign and growing competition. Which factor do you think it is?

Totals
52% Better competitors
48% Bad redesign
Males
51% Better competitors
49% Bad redesign
Females
54% Better competitors
46% Bad redesign

Better competitors

Bad redesign

Snap’s Chatting Away to Figure Out Struggles with User Exodus


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