Snap, Inc reported its latest quarterly financial results last night, and the show the first ever quarterly decline in daily active users (DAUs) since Snapchat first launched. Ouch. Snapchat ended June with 188 million DAUs, down three million quarter-on-quarter, even if they were up by 15 million year-on-year.
Bear in mind Q2 was when Snapchat was hoping to enjoy a bounce in usage thanks to its new (if controversial) app design. CEO Evan Spiegel ‘fessed up to “the disruption caused by our redesign” as the main cause of the quarterly decline.
“We have been working hard to iterate and improve Snapchat based on the feedback from our community,” he promised. “We feel that we have now addressed the biggest frustrations we’ve heard and are eager to make more progress on the tremendous opportunity we now have to show more of the right content to the right people.”
Snap’s financial metrics actually beat expectations: its revenues were up 44% year-on-year to $262m, while its net loss narrowed from $443m in Q2 2017 to $353m in Q2 2018 – although that’s still a hefty loss of course. Enter Saudi Arabian royalty stage left: Prince Alwaleed Bin Talal Bin Abdulaziz Al Saud has acquired a 2.3% stake in Snap for around $250m through his Kingdom Holding Company. And yes, that’s the same Kingdom Holding Company that has just taken a significant stake in Deezer…