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SAN FRANCISCO – Snap, the maker of the Snapchat Disappearance app, continues to struggle.
The social media company said Thursday it has lost two million daily active users in the last three months, after losing three million this summer, for a total of 186 million. While this number was up from the previous year, the consecutive quarterly losses were worrisome for a company that did not face the misinformation and bias issues that came under scrutiny from other social media companies.
Snap also continued to lose money. While the company said its revenues increased 43% to a record $ 298 million in the third quarter from the previous year, its net loss was $ 325 million. The loss was narrower than a year ago.
The company's shares, which have lost almost half of its value since the beginning of the year, lost 11% after closing, to $ 6.99 at the end of normal transactions.
Snap has struggled to retain its users recently, partly because of a problem unpopular redesign that effectively separated social media and two-part media from its application last year. Snap canceled part of the redesign after people revolted, but he was slow to recapture users and win new ones.
The company said people were continuing to move away from Snapchat 's Android application, particularly because it did not offer the same speed and performance as the iPhone. iPhone application. Snap has been working for some time to change its Android app, but has not announced a date for the redesign.
Evan Spiegel, CEO of Snap, said the company was focused on quality rather than speed as it prepared the Android project, Mushroom.
"We are making good progress in testing the application in some markets," said Spiegel. "We are looking forward to launching it when it is ready."
The company expects to continue losing daily active users during the quarter, said Tim Stone, Chief Financial Officer of Snap. He refused to say how many people he expects to leave the application.
Snap has taken steps to improve its management. On Wednesday, the company announced that it has hired two executives to replace Imran Khan, its strategy director, who said in September: he would leave the company. His role will be shared by Jeremi Gorman, former director of advertising at Amazon, who will oversee Snap's activities, and Jared Grusd, former executive director of HuffPost, who will lead the strategy.
"What they have to fix, it's their product," said Richard Greenfield, an analyst at BTIG Research.
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