For starters, the photo messaging app maker posted quarterly revenues of $230.7 million, well below the $244.5 million analysts were looking for.
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However the redesign frustrated many younger users who found the collation of stories and messages messy and far from user-friendly. The same goes for daily active users, reported 191 million, which is lower than the expected 194.14 million user.
In addition, Snap said the average revenue per user grew 34% from a year earlier, to $1.21.
The new app design that Snapchat introduced clearly differentiated friends from professional content creators.
Snap also warned investors to expect slower than predicted growth for the rest of 2018.
Users across the board have been unhappy with the latest version of Snapchat, but Android users have been hit especially hard, as its version of the social app uses older code that has a tendency to crash on users. Facebook’s WhatsApp chat app has a similar feature that’s used 450 million times a day, the company said.
Meanwhile, Snap’s losses grew to $385.8 million, down from more than a $2 billion loss year-over-year. Khan noted that the company is rolling out new tools for advertisers and focusing on small businesses. That’s up from its 187 million users, but the growth rate is 2.13 percent, its lowest ever. In order to onboard these advertisers, we have been rolling out our self-serve tools and investing to create a frictionless ad buying experience.
The Reach and Frequency tool is now only available to a select group of large advertisers in the USA and United Kingdom, allowing them to plan campaigns and buy ads in advance via the self-serve ad platform.
Chief Executive Officer Evan Spiegel said that while the change is disruptive in the short-term, it’s necessary for the future vision of the company.
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That represents an increase in losses of 16 per cent year-over-year and 37 per cent sequentially.
