It is about time that people starting losing interest in Snapchat. It seems as if an era has come to an end. It was found that the company garnered 7 million daily active users over the period of past three months. Snapchat could boast about 166 million daily active users which were raised to 173 million users, but the twist is that Snapchat now cannot compete with 250 million daily active users of Instagram, utilising the Instagram stories, which by the way, celebrated its first birthday on last Wednesday.
The sudden fall in the usage is because its adversaries, Facebook and Instagram has engendered features of stories which was previously only offered by Snapchat. Somewhere down the line, the individuality of the app was copied and beaten at. Instagram is the reason behind the flattening of the growth of Snapchat. Just like Snapchat, even Instagram can boast about its most famous Puppy filter. This seems like a check mate by Instagram. Because of this, Snapchat saw a considerable decline in the number of people using it on a daily basis, which is now collapsed down to 8 million people per day.
It is even estimated that Snap is not profitable, the company is incurring a loss of 16 cents per share, and this excludes various items. With the revenue doubling to $181 million, analysts say it is still below the expectations of $186 million. Snapchat is facing a total loss of $443 million this quarter, which is quadrupling from the $115 million net loss last June sadly. The cause of the loss can be located majorly to stock-based compensation again resulting in a $2.2 billion loss last quarter.
But Snapchat is really trying to change things to give it a newer look and specification. The makers have added multiple new features like Snap Maps, links, and background filters, which according to Evan Spiegel would be its best strategy for tackling imitators. Snapchat has even found another hit which is none other than the dancing hot dog filter. They still need to up the game as it hasn’t been enough, despite having being viewed more than 1.5 billion times.
But the spirits of the company are still soaring high, they have taken measure to ensure the future of the app. Spiegel, the co-founder of the app was found remarking “Our dancing hot dog is most likely the world’s first augmented reality superstar,” Let us hope that Snapchat comes out of this turmoil and wins back its position in the market. The world would be a different place without Snapchat in it.