“So if we can take a few percent market share there, it would make a real difference to our user base.” “There’s roughly 2 billion or so - maybe more 2 billion people who are on Android and don’t have Snapchat,” CEO Evan Spiegel said in early February. And while Snapchat didn’t grow its user base (still a major concern), the company is still much bigger than Twitter and is finally starting to test the new Android app that it keeps saying will bring in new users. Snap had a strong end to 2018 on the revenue side - the company has long argued that its approach to ad sales is better for the long term, even if it hurt the company in the short term. There are some reasons to believe that Year 3 may provide a turnaround. That combination - slower-than-expected business growth as well as user growth - is the reason Snap’s stock chart looks so sad. The company has since rolled back parts of the redesign and hopes to jumpstart user growth with a new version of its Android app, but the momentum has been killed. In early 2017, the company pushed out a redesign of its Snapchat app that left users angry and frustrated, and ultimately halted Snapchat’s user growth. Shortly after going public, without much historical success to fall back on, Snap’s business growth slowed more than people expected. The first is that Snapchat made a big change to its advertising business - a switch to selling ads programmatically through software algorithms instead of through salespeople - that led to much lower ad prices and thus less revenue.
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