Snap Inc. today announced its Q3, 2017 earnings which paint a pretty negative picture for the company. Compared to analyst expectations of adding 8 million new users, Snapchat just added 4.5 million users for the quarter ending September.
Worse, the company’s ad revenue tumbled by over 60 percent when compared to a year ago. Now to help get over this slowdown and attract new users, Snapchat’s CEO Evan Spiegel has finally addressed one longstanding criticism of the app and promised to solve it. Snapchat’s app has always been criticised as being difficult to use and hard to understand. Spiegel finally acknowledged that and says that the team is working on a redesign that should make Snapchat easier to use. He terms the design as being “disruptive” for their business in the short-term and it is unclear how Snapchat users will take to the new redesign.
“One thing that we have heard over the years is that Snapchat is difficult to understand or hard to use, and our team has been working on responding to this feedback. As a result, we are currently redesigning our application to make it easier to use. There is a strong likelihood that the redesign of our application will be disruptive to our business in the short term, and we don’t yet know how the behavior of our community will change when they begin to use our updated application” – Snapchat’s CEO Evan Spiegel.
While the CEO did not divulge many details about the redesign, he did mention that it would make content discovery easier on Snapchat. In addition to the redesign, Snapchat is also working on improving its streaming architecture which should help fuel growth in emerging markets where high-speed internet is still not widely available.
Snapchat’s growth has stalled heavily after Instagram copied all of its features. Since then, Instagram has seen its growth numbers surge while Snapchat’s growth rate has stalled considerably. It remains to be seen whether the redesigned Snapchat app will help the company in regaining its lost users or not.[Via Snapchat]