Snap starts adding users again


Its parent company Snap (SNAP) said on Tuesday that the messaging app had 190 million daily active users during the first three months of 2019, up from 186 million daily users the previous three months and better than investors had expected.

Snap’s revenue for the quarter surged by 39%, hitting $320 million and topping Wall Street estimates. On a call with investors, CEO Evan Spiegel touted Snapchat’s transition to self-serve ad products and its appeal to a younger audience.

Snap shares rose as much as 10% in after hours trading Tuesday immediately following the earnings report, before giving up much of those gains.

The results should help the narrative that Snap is making progress on turning around its business. Snap said in February that it had finally stopped losing Snapchat users. Snap’s stock had more than doubled so far this year, prior to Tuesday’s earnings report.

The company said it has completed the rollout of its new Android app, which could be key to it continuing to add users. Snap said the new app opens 20% faster on average and should be a better experience for users even on lower quality phones. Previously, users complained about the Android app crashing and having poor camera quality.

“The revamped Android app could drive more gains in subsequent quarters if a significant number of people start using this version of Snapchat. A sizeable chunk of the world’s smartphone user base is on Android,” said Debra Aho Williamson, principal analyst at eMarketer.

But Spiegel acknowledged Snap will have to win back Android users who had a poor experience with the old app.

“It’s going to take time to rebuild that trust. The best way for us to do that is deliver on the product,” he said. “It’s going to be a process.”

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