Snapchat, which launched in 2011, has proved hugely popular with younger users, many of whom have defected from older social media platforms such as Facebook, and in the UK it is forecast to make more in ad revenue than Twitter next year. Revenue came in at $230.7m, an increase of more than 50% year on year but below the $244.5m forecast. Snapchat reported 191 million daily active users in the first quarter, missing expectations of 194.15 million. “It is not clear to us why the app redesign – the first product Snap ever tested at scale – was rolled out broadly, and we are even less clear on why it hasn’t been more aggressively rolled back already,” said Lloyd Walmsley, a Deutsche Bank analyst. Even taking Wednesday’s share slump into account, Snap is worth $17.6bn (£13bn). Snapchat’s 27-year old founder, Evan Spiegel, attempted to brush off the disaster, saying the redesign was necessary to broaden the app’s popularity with users and advertisers. Snapchat also issued a growth warning saying the redesign fallout would mean a substantial slowdown in revenue in the current quarter. The service managed to add just 4 million new users in the first quarter, just over half the number forecast. On Tuesday, the user backlash against Snapchat, known for its disappearing messages and photograph filters, affected the company’s first quarter results, which missed targets. It capped a bad start to 2018 after a tweet from Kylie Jenner asking her 24 million followers “does anyone else not open Snapchat anymore?” proved a stock market kiss of death, wiping $1.3bn off the company’s value. Snapchat started its first major redesign late last year and by February more than 1.2 million users had signed a petition calling for it to reverse the “annoying” changes.
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