Snapchat’s new design is driving users away in bunches

The ephemeral social media company revealed in its latest earnings report that its daily active user count has dipped, attributing the decline to early frustrations with its new-look app.
Snap reported 188 million daily active users during the last quarter — falling short of Wall Street’s expected 192 million and dropping from last quarter’s 191 million.
The Los Angeles-based social network reported $262 million in revenue, beating the $250.4 million expected by analysts, and lost 14 cents per share. Wall Street had forecast a loss of 17 cents per share for the second quarter.
Saudi Arabia’s Prince Alwaleed bin Talal announced soon after the results that he had finalized a $250 million deal in May to buy a 2.3 percent stake.
Shares in Snap climbed more than 12 percent in after-hours trading before reversing course and going flat.
Snapchat has been trying to please its users ever since its first redesign in November in an attempt to simplify and streamline the user experience.
Features that many used on a daily basis were moved to different parts of the app, causing confusion among its loyal users.
“We have been working hard to iterate and improve Snapchat based on the feedback from our community,” Evan Spiegel said on a call.
He added that the app, in its current form and with recently introduced features, is positioned for long-term success.

“We believe that this is an important evolution of our product that will help drive future growth in engagement,” he said. “Our users continue to spend an average of over 30 minutes on Snapchat on a daily basis.”

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