Snape announced Tuesday that it will redesign its Snape Chat application to reach a wider audience after disappointing financial results and slower user growth.
The US company, which became a public company in March and had the best start of a technology company in the stock market years ago, posted revenue and growth in the number of users for the third quarter of this year, far below Wall Street's expectations, as it sought to compete. Instagram company, and its parent company, Facebook.
Shortly after the announcement of the financial results for the three months ended September 30, yesterday, Snape fell 20% in the after-hours trading, before slightly improving to a price of $ 12.57. The company's share price when it floated in March was $ 17.
The growth in the number of users during the third quarter of 2017 was below analysts' expectations. The company estimated the number of active users per day at 178 million, compared to 173 million in the second quarter of this year. Analysts had expected the number to rise to 181.8 million, according to market research firm FactSet.
SNAP's chief executive, Ivan Spiegel, said the company launched a redesign of Snape Chat, in response to requests from users who have been saying for years that understanding and using the application is difficult. "We will facilitate the discovery of the large amount of content on our platform, which is not caught or absent from view every day," Spiegel told analysts at a conference call.
Snape is not the only social networking company looking to boost user growth by redesigning the application. Twitter also announced on Tuesday that it would increase the maximum number of characters from 140 characters to 280 characters after successfully testing the increase For almost a month and a half.
Asked what Snape Chat would look like, Spiegel said the company was considering the development of mobile content feeds such as the Twitter timeline and Facebook's "latest news" page, and that there was room for "personalized content service."
Spiegel also said the company will build next year more tools that allow users to share with a broader audience than their friends list, similar to the common Engaging and Twitter sharing mechanism.
As for Snape's revenue, the bulk of which comes from advertising, during the third quarter of this year, the company said it reached US $ 207.9 million compared to US $ 128.2 million during the same period last year. Analysts' expectations were estimated at 236.9 million US dollars.
The application of Snape Chat was one of the most popular applications of social networking among young people and witnessed a great growth, before Facebook began a war, by imitating one of the most prominent features, the stories, in almost all applications.
The current figures show that Facebook, which has the world's largest social networking network with more than 2.07 billion active users per month, has won Snape, with Instagram subscribers exceeding 300 million a day.
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