SAN FRANCISCO — Snap misplaced thousands and thousands of customers final yr after an unpopular redesign of Snapchat, its ephemeral-messaging app. Now that exodus seems to be slowing.
The corporate mentioned on Tuesday that it had stanched the circulate of individuals leaving its platform. Snap’s every day energetic customers totaled 186 million within the fourth quarter, the identical as within the earlier quarter and down only one million in contrast with a yr earlier, after two consecutive quarters of falling person numbers. As well as, Snap’s income rose 36 % to $390 million, whereas its internet loss narrowed to $192 million.
“Change is all the time tough, and this previous yr was no exception,” Evan Spiegel, Snap’s chief government, mentioned in ready remarks concerning the firm’s earnings.
The monetary report, which despatched Snap’s shares hovering greater than 20 % in after-hours buying and selling, follows months of turbulence for the corporate. Since going public in 2017, Snap has been coping with growing competitors from Fb, together with its core social community and its different apps, comparable to Instagram and WhatsApp.
Final yr, Snap redesigned its app, successfully separating social and media into two sections. Its customers quickly revolted, with celebrities like Kylie Jenner criticizing the change. An extended-awaited replace to Snapchat’s Android app has additionally but to be totally rolled out.
Extra just lately, Snap has endured a wave of government departures. The corporate mentioned in January that its chief monetary officer, Tim Stone, would depart, lower than a yr after he was employed final Might. Imran Khan, Snap’s chief technique officer, stepped down in September. That very same month, the corporate misplaced Nick Bell, its vice chairman for content material. Its head of , Sahil Sharma, exited in December.
On high of this, Snap is beneath scrutiny from the Securities and Change Fee and the Justice Division. The corporate mentioned late final yr that it had responded to subpoenas from these companies concerning disclosures it made forward of its preliminary public providing.
In an earnings name on Tuesday, Mr. Spiegel mentioned he deliberate to take time with the seek for a brand new chief monetary officer “and actually get it proper.”
He mentioned Snapchat customers on Apple units have been beginning to return to the platform and every day energetic use had elevated amongst these folks. Snapchat’s Android app replace can also be progressively being launched to a small set of customers, permitting them to open the app 20 % sooner, he mentioned. Mr. Spiegel estimated that there have been roughly two billion Android customers who don’t use Snapchat — and that luring even a small proportion of them to the app would “make an actual distinction.”
Lara Candy, Snap’s interim chief monetary officer, mentioned the corporate was “cautiously optimistic” that person numbers wouldn’t decline within the present quarter. In whole, Snap mentioned that it anticipated income of $285 million to $310 million throughout the present quarter.
Nonetheless, Snap stays small in contrast with Fb’s photo-sharing app Instagram, which has been quickly gaining new customers. Fb introduced throughout its earnings name final week that Instagram had 500 million every day energetic customers of Tales, a function that lets folks share pictures and movies which have a life span of 24 hours. Snapchat had pioneered the Tales function.
Wall Road analysts mentioned they have been relieved at Snap’s monetary outcomes.
“This was by far probably the most hated inventory of the entire web, by 10 miles,” Brent Thill, a managing director at Jefferies who follows tech firms, mentioned of Snap. “What they did was a step in the proper route. They’re not out of this but, however that is the first step.”