Snapchat continues to struggle financially

snapchat

If you have been using a smartphone for the past five or so years, then you are most probably familiar with the Snapchat app. This is an app that is used as a photo-messaging app. It received a warm welcome from the number of users it had already started to get after it was released.

However, immediately the Snapchat app rose to be a hit among all the people using it some third-party applications all of a sudden appeared to wreck the illusion of a fleeting idea which went away after they were viewed. Just like all the other tools which share media, Snapchat users should be thoughtful and careful about the pictures they send using Snapchat.

SnapChat Crashes Bad!

How it works.

Snapchat works by allowing its users to set a time limit on a picture, video or text they have sent such that the person receiving them can only see them for a few seconds before they disappear.

However, they can still see them again by purchasing them through some in-app deals. You can also add a friend or family from your address book or even your facebook friend list or you can just search for them through their specific handles.

For you to send a picture, you will first need to take a snapshot, the app has an in-app camera for better quality, then you will put a time limit, choose the person you are sending it to then send. They have been able to come up some software that recognizes your face which lets them include animated effects to the pictures of the users this was possible due to the fact that Snapchat works by tapping and holding your image in your front camera.

Losing finances.

In as much as the app may sound fun to use and popular, the company recently said that they are starting to drop financially this is because over the last 3 months the company lost about two million people who are active daily, this made the company lose approximately three million over the past summer going down to a mere hundred and eighty-six (186) million.

The company said that their figures were up the previous year, the consecutive quarterly losses were becoming a trouble for this company which hasn’t been dealing with issues bias and disinformation which were actually putting the other social media companies under a scrutiny.

Snap said that its revenue grew 43% to make a record of $298 million in the 3rd quarter from the previous year, Snap ’s net loss was totaled to about $325 million. This was a bit narrow than the previous year.

The stock of the company which had lost close to half its total worth since the year began had dropped 11% in after-hours trading after they closed at about $6.99 by the end of regular trading.

Since then snap has been facing problems keeping its users, the reason is partly that of a redesign that was not so popular which ended up successfully separating social and media to 2 parts of their app previous year. Snapchat decided to roll back most of the redesign following a revolt from people, however, it has not been easy to win their users back and possibly gain new ones on the way.

The company said most of its users continued to be drawn away from Snapchat’s Android app specifically because it didn’t give similar performance and speed compared to the iPhone app. They said that they are working towards changing its Android app and that they would need some time for the redesign.

Solution

The company’s chief executive Evan Spiegel said that they were focusing on the quality compared to speed. The company is expecting to lose active users daily in the present quarter although it is not clear exactly how many people are expected to leave Snapchat.

Conclusion

Snapchat has been securing measures to include to its management. It was reported that recently the company hired two new executives to act as a replacement for Imran Khan the chief strategy officer who had already said he would resign. His position will be shared between a previous advertising major Jeremi Gorman and former chief executive of HuffPost Jared Grusd. They are presently working on a project to try and save Snapchat from drowning further.