Aug 7, 2018

Snapchat loses users for the first time after controversial redesign

lllustration: Greg Ruben/Axios; Photo: Mark Lennihan/AP

Snapchat reported Tuesday that it lost over 3 million daily active users in the second quarter of 2018, the first time the company has ever reported a loss in its user base.

Why it matters: The company blames its very controversial redesign earlier this year for the drop.

In total, the company saw a decrease of 2% of its user base from last quarter. CEO Evan Spiegel says that monthly active users, a figure Snapchat doesn't publicly report, is growing.

The upside: The company's stock was still up in after-hours trading, as a loss in users did not result in missing its revenue or earnings goals.

  • Revenue was up 44% to $262 million in Q2 2018, compared to revenue of $182 million in Q2 2017.
  • Average revenue per user (ARPU) increased 34% to $1.40 in Q2 2018, compared to $1.05 in Q2 2017.

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Supreme Court to hear Philadelphia case over same-sex foster parents

Photo: Daniel Slim/AFP via Getty Images

The Supreme Court agreed Monday to hear a high-profile case that could reshape the bounds of First Amendment protections for religion.

Why it matters: The direct question in this case is whether Philadelphia had the right to cancel a contract with an adoption agency that refused to place foster children with same-sex couples. It also poses bigger questions that could lead the court to overturn a key precedent and carve out new protections for religious organizations.

Why Apple may move to open iOS

Photo illustration: Jakub Porzycki/NurPhoto via Getty Images

Apple may finally allow iPhone owners to set email or browsing apps other than Apple's own as their preferred defaults, according to a Bloomberg report from last week.

The big picture: Customers have long clamored for the ability to choose their preferred apps, and now Apple, like other big tech companies, finds itself under increased scrutiny over anything perceived as anticompetitive.