Snapchat user growth slows as it reports financial results

Snapchat user numbers rose only 2% in the last three months, as parent company Snap Inc reported financial results below analyst expectations.

The social media service said its number of daily active users had risen to 191 million, up from 187 million in the last quarter, but the increase was smaller than predicted.

The company's revenue for the last three months of 231 million dollars (£170m) was also down 19% on the previous quarter's 286 million (£210m), which the social media platform partially put down to its controversial redesign.

The revamp of its app, unveiled late last year, was widely met with a negative response by users, and share prices were sent tumbling when reality star Kylie Jenner voice her disapproval of the new look and layout.

(Lauren Hurley/PA)
Snapchat users have risen by a modest amount (Lauren Hurley/PA)

The results showed a net loss of 386 million dollars, however this is significantly down on the 2.2 billion dollar (£1.6bn) loss reported for the same period last year.

Snapchat has also faced intense pressure from Facebook, which has updated its range of social apps, Messenger, Instagram and WhatsApp, with features to similar to those on Snapchat, including Stories and camera filters.

In an attempt to diversify its business, Snap has also moved into hardware for the first time, launching the video-enabled Spectacles sunglasses that could record short clips to then be shared via Snapchat.

Despite poor sales, last month Snapchat confirmed a second generation of Spectacles were on the way, with a slimmer design and new ability to take still pictures as well as capture video.

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