Snap Inc. has lacked Wall Street predicted for its daily users and towards revenue this Tuesday, after redesigning the Snapchat messaging app that spun off the advertising sources as well the long-time followers, contributing its shares dropping 16 percent.
Substantially decline towards revenue growth in the second quarter, as mentioned by the company, facing the toughest battle even after introducing the new app to defend the biggest rivalries Facebook Inc. adding up Snapchat resembling features.
On daily basis, number of active Snapchat users, significant in producing income towards advertising, that has gone up to 191 million in the quarter end of March 31, with an exceptional agreement hoping 194.15 million, as per Thomson Reuters I/B/E/S.
However, it showed an increase in 18 percent last quarter’s figure, as compared it was 15 percent year before. In addition, the redesigning of the Snapchat messenger app, not only disappointed the users but also created an anxiety for the marketing agency, as said by Debra Aho Williamson, eMarketer analyst.
The positive side of this is, Snapchat has been loyally involved in using the app numerous time every day. Along with the Snapchat ad that has its own creativity.
It was approved by the company executive related to the new designing that has miffed the results, but has continued in remaining still with the plan to store the content from friends distinct from publishers. Well, this step might drive growth in the future, they added.
Further, the redesigning will build up a strong future with regards to both media platform and communication products, more to come to double the process, a shared by Evan Spiegel, Chief Executive with the analyst in a call conference.
In fact, the redesigning concept was brought to grab more audience, but unfortunately flashed the disapproval from many users which included celebrities as well Chrissy Teigen and Kylie Jenner. Adding some anxiety from the advertising agencies, Spiegel added. This anxiety was created due to the cheap publicity all around as said by the Imran Khan the Chief Strategy Officer. And, moreover due to negativity spread all over by the press every day, it will obviously hold the thoughts of an individual.