As a part of their latest Snapchat quarterly report reported a two percent decline in their daily active users. It is interesting to note that the decline comes close on the heels of its redesign which received flak since its launch.
Numbers suggest in the Snapchat quarterly report that Snapchat’s Daily Active Users fell to 188 million and reported monthly active users at 100 million. The results come roughly after six months of the redesign.
“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. For example, the number of people that watch Publisher Stories and Shows on iOS every day has grown by more than 15 percent this year, and we are excited to bring the learnings from our iterations on iOS to our Android application. Additionally, more Snaps from Publisher Stories and Shows were viewed in July than any other month in our history,” Evan Spiegel, Co-Founder & CEO, Snap Inc said in an official announcement.
While the redesign was based on consumer feedback and intended at making the app more user friendly, it received backlash globally with celebrity influencers such as Chrissy Tiagen exiting the social networking app altogether.
But all is not lost for Snapchat as their sales climb by 44 per cent reaching to a $262.3 million. Spiegel also added that the existing users continue to spend over 30 minutes on the app daily and that the app is starting to see growth in new user retention.
“For example, new user retention for people older than 35 has increased more than 8 percent since we launched the redesign,” said Spiegel. The existing application has helped increase new user retention on Android by nearly 20 percent since Q4 of 2016. As of now, Snapchat is working on making the app user friendly for lower end devices.
Further on the business front, after almost two year of starting programmatic advertising, Snapchat is working on building advanced targeting, measurement, goal-based bidding, near real-time, analytics and insight which has resulted in lower cost-per-impression, costper-swipe, and cost-per-install for advertisers, while simultaneously growing our advertising revenue 48 percent year-over-year.
“I’m really proud of the progress we’re making towards building a sustainable business and generating free cash flow. We feel good about our cash position as we move forward and scale our business,” Spiegel added.