Snapchat isn’t the social networks powerhouse it utilized to be.
The tech company stated Thursday that 186 million users logged into the ephemeral messaging app daily in the 3rd quarter, below 188 million users in the previous quarter. It’s the 2nd quarter in a row that Snapchat has actually seen a drop in the variety of day-to-day active users
Snap CEO Evan Spiegel stated the drop primarily originated from users who utilize the app on Android phones. The tech company has actually been dealing with a brand-new variation of the app for Android users, however executives didn’t state precisely when it would be launched.
“The Android community represents a global growth opportunity for us and we are making good progress testing the application in select markets. We look forward to rolling it out when it’s ready,” Spiegel stated throughout a teleconference with experts.
In August, the business reported its very first decrease in day-to-day active users, which Spiegel blamed on an out of favor redesign of the app. At the exact same time, it’s been dealing with stiff competitors from Facebook- owned Instagram, which likewise has a function that lets users publish pictures and videos that disappear in 24 hours.
The tech company is anticipating that day-to-day active users will continue to fall in the 4th quarter.
Snapchat, that makes its cash from advertisements, has actually been attempting to get teenagers to invest more time on the website. In October, it launched a list of 12 brand-new programs making their launchings this fall. The business even offers video-capturing sunglasses called Spectacles
While the app is popular amongst 13- to 34- year-olds in the United States and Europe, Spiegel stated the business is attempting to reach billions of individuals worldwide who aren’t on the app.
“We’re trying to get the right mix of content,” he stated.
The excellent news on Thursday was that Snap’s third-quarter bottom line and profits did much better than anticipated.
Snapchat reported an adjusted loss of 12 cents per share, which was much better than the loss of 14 cents per share experts surveyed by Thomson Reuters anticipated typically. The business grew its profits year-over-year by 43 percent to $298 million, above the $28321 million projection.
Still, financiers weren’t pleased. The business’s stock dropped more than 8 percent to $6.38 per share in after-hours trading.
First releasedOct 25 at 1: 27 p.m. PT.
Update at 3: 11 p.m. PT: Included remarks from Snap’s teleconference.
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