Snap Inc., a social media company today announced its Q3 2017 earnings. The company noticed daily active users climb by 5 million in the third quarter that shows just 3 percent growth from the second quarter.
The company was expecting 8 million new users during the quarter but it added just 4.5 million new users. That means its daily active users rose to 178 million in the Q3 2017.
The company’s ad rates have also slumped down to 60 percent year-over-year.
Snap CEO Evan Spiegel said that the company was launching a major redesign for the app to reduce the slowing growth rate.
In snap’s investor release, Spiegel admitted long-standing disapproval about Snapchat being difficult to understand or hard to use. In response, Spiegel said that the company is working on redesign of its application that will make it simple and easier to us.
Snap is not the only social media company looking to relaunch growth by changing its design. Twitter Inc. announced on Tuesday that it is rolling out 280 character tweets to users across the world.
Spiegel declined to comment on details about the redesign, but he said that the company’s goal is to improve content discovery and maintain the exploratory nature” of Snapchat.
Snap also said that it will improve its streaming architecture for Story playback and it will build more tools next year for users to share with broad audiences beyond their friends. The company believes that the new improvements will help growth.