Snap is still struggling to add new users

Snap Inc just dropped its second-ever quarterly earnings report, and the picture is as bleak as expected. The young company continues to struggle to grow its pool of users, despite adding new features in the past few months like the Snap Map and launching its stable of original shows. Its revenue for the year is about $181 million, but overall it reported losses of about $193 million after taxes.

Just like it did last quarter, Snap added a measly percentage of new daily active users (DAU) — just 4 percent (or 7 million new users) this period compared to 5 percent (8 million new users) the first quarter of the year. Its total DAU now stands at 173 million, which is still a far cry from Instagram Stories’ 200 million users as of April this year.

It’s likely that Snapchat is seeing growth slow because of the aggressive copying of its features from rivals Instagram and Facebook. But a recent acquisition could prevent future ripoffs. Snap’s earnings call is happening in just 20 minutes, and we will update this post once we hear more about its plans for the rest of the year.

Source: Snap