Snapchat does not raise her head. The social network created by Evan Spiegel does not manage to grow according to the estimated forecasts and is already looking for alternatives to attract more users. In that battle Facebook and Instagram win without discussion. Thus, according to the results offered by Snap, Snapchat’s parent company, only registers 178 million active users throughout its platform, and in the last quarter only obtained 4.5 million more. The comparison with its rivals is overwhelming: Instagram has almost twice as many users (300 million) while the distance with Facebook (800 million) is abysmal.
Since it went public last March, Snapchat’s growth has been minimal, and the financial numbers alarming. “We are growing much slower than we would like,” said Spiegel. This last quarter only generated 208 million dollars, while throwing losses of 443 million dollars. Likewise, its price on Wall Street has not been above its initial price since July 7 and yesterday, after presenting its accounts, it fell by 20% more.
Mark Zuckeberg can be happy to have gotten revenge on his counterpart Spiegel after not wanting to sell him in 2013 Snapchat for 3,000 million dollars. From that moment, the founder of Facebook has not stopped copying features that Snapchat offered, such as stories, and introduce them within the applications he has (Facebook, Instagram and Whatsapp). The numbers have ended up smiling at Zuckerberg, who has managed to reduce the impact of his competitor considerably.
And what is the solution proposed by Spiegel to stop this bleeding? Redesign the application to make it more attractive to new users, a reason that many people shouted. Now, and after seeing the negative results, Snapchat seems that it is going to give a turn and make cases to its users: “We are redesigning our application to make it easier to use,” they have expressed, acknowledging the difficulty of its use.
Tencent, a surprise suitor
But in spite of the bad streak that crosses, Snapchat continues being attractive in the market. Thus, the Chinese giant in new technologies Tencent (owner of WeChat) acquired yesterday 12% of the company, movement that surprised yesterday in the markets. Apparently, in 2012 and 2013 Tencent had bought a share in Snapchat through a series of private rounds, while an additional agreement failed to materialize in 2014.
Already during the first days of Snapchat’s life, she referred to Tecent as a “role model”. WeChat, which is very popular in China, relies heavily on scannable QR codes that work like the yellow “Snapcodes” profile used by Snapchat.