Redesigned Snapchat Sees Users Drop by 3 Million for Quarter

Snapchat’s ad revenue is on the rise, but the company saw its first decline in users, according to the quarterly report it disclosed recently. Daily active users fell to 188 million, down 2 percent from the prior quarter. It was the first full quarter that all users were transitioned to the redesigned Snapchat, which rolled out this year. The redesign was widely considered a bust, with famous and everyday users complaining about the confusion caused by the new placement of some of their favorite features. That exceeded the $249.8 million average analysts estimated. After a tumultuous first year as a public company, Snap is starting to show some stability, despite the slowdown in user growth. The company for the first time offered a forecast for future revenue, indicating that it has a clearer understanding of its business potential, even after shifting strategies, cutting staff and cycling through managers. Snap recently appointed a new chief financial officer, Tim Stone, who was previously at Amazon. Snap has been working to carve out a slice of the digital-advertising market dominated by online giants Facebook and Google. The overhaul of the once fast-growing app turned some users away, and more people are flocking to Facebook’s Instagram, which has successfully copied Snap’s most popular features.