Snapchat’s infamous redesign will be officially hurting its business. The company’s stock plummeted Tuesday afternoon after This particular released results for the first quarter of the year.
Snap, the app’s parent company, said Tuesday This particular generated $230.7 million in revenue inside first three months of the year, short of Wall Street’s expectations along with also 19% lower than the previous quarter, “primarily due to seasonality along with also our redesign.”
This particular added just 4 million completely new users inside recent quarter, for a total of 191 million daily active users — again falling short of expectations, along with also raising doubts about its growth prospects. Whatever strength Snapchat showed inside previous quarter, when This particular added 8.9 million users, suddenly appeared to be fading.
The stock got clobbered in after-hours trading, falling as much as 17%.
So far, 2018 has been tough for Snapchat. In February, Snap’s stock fell dramatically after Kylie Jenner, once the most favorite person on the platform, tweeted, “sooo does anyone else not open Snapchat anymore? Or will be This particular just me… ugh This particular will be so sad.” At the time, Citi analysts also said the redesign was not favorite with many of Snapchat’s users or with influencers.
William Alden will be a business reporter for BuzzFeed News along with also will be based in San Francisco. Alden covers the technology industry.
Contact William Alden at email@example.com.
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