Snapchat loses 3 million daily active users during the second quarter
Snapchat parent Snap reported this afternoon that during the second quarter, the messaging app lost three million daily active users. That number now stands at 188 million DAUs as Snapchat finds itself in a battle with Instagram for consumers' eyeballs. Instagram has continued to copy Snapchat features, such as it did with Stories. The problem is that the public seems to feel that whatever Instagram copies from Snapchat, it does it better.
For the three month period from April through June, Snap's revenue rose 44% year-over-year to $262 million. That topped Wall Street forecasts of $250 million. And while those on the Street were expecting the company to report a loss of 17 cents a share, Snap reported a loss of 14 cents a share, again bettering Wall Street estimates.
Snapchat founder and Snap CEO Evan Spiegel blamed the decline in users on the redesign of Snapchat earlier this year. Users were so upset that a petition was started on Change.org to demand that the old UI be returned.
Besides the Snapchat messaging app, the company also sells its video-recording sunglasses called Spectacles. During the quarter, the company launched its updated line that includes HD video and protection from water. The glasses retail for $149.99.
As unpredictable as ever, Wall Street ignored the drop in users and focused on Snap's better than expected financial performance. After the report was released, Snap's stock price rose slightly to $13.20 from the regular session's close of $13.12.