Though Snapchat’s new user rate has been declining in recent months, it has never experienced an actual loss of users… until now. In the company’s latest earnings report, it was revealed that the company lost three million daily active users in the second quarter of 2018, from 191 million down to 188 million.
However, it’s not all bad news. The company also beat Q2 revenue projections, bringing in $262 million as compared to an estimate of $250.43 million (based on $1.40 average revenue per user).
Many factors led to this eventual exodus of users, including Snapchat’s much maligned app redesign earlier this year and plenty of competition from apps like WhatsApp and Instagram, which are both now owned by Facebook.
Instagram added 300 million users from Q2 2017 to Q2 2018, followed by Facebook at 228 million and WhatsApp at 200 million. By comparison, Snapchat added only 15 million daily users over the past year.
Evan Spiegel, Snap chief executive and co-founder, said, “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.”
With the future of Snapchat in question, the next year will be full of trials for the comparatively young company.