advertisement
advertisement
advertisement

Snapchat’s much-hated redesign scared advertisers and “disrupted” behavior

Snapchat’s much-hated redesign scared advertisers and “disrupted” behavior
[Photo: Flickr user AdamPrzezdziek]

It looks like Kylie Jenner’s return to Snapchat wasn’t enough of a boost for the app. Snap missed estimates in its Q1 earnings results Tuesday, reporting $230.7 million in revenue and 191 million daily active users.

As any teen could have told you, Snapchat’s controversial redesign was largely to blame.

“Our redesign created some headwinds in our revenue this quarter by disrupting user behavior and creating some apprehension among our advertising partners,” Snap CEO Evan Spiegel said in prepared remarks. And things won’t exactly look up in Q2: Snap noted that year-over-year revenue growth rate would “decelerate substantially” next quarter.

Snap did still pick up some new users over the past quarter—4 million, to be exact—but there’s no telling how users might react to the planned redesign of the redesign, which will move stories from friends to the Discover tab, alongside content from brands, publishers, and celebrities.

Snap stock is already down more than 16% after-hours following the earnings report.

advertisement
advertisement