Snapchat has recently been dealing with a heavy competition from Instagram and since it went public in March, the company has lost over $3 billion and its stock has not traded above its IPO price since July. Because of that, the company is working on a significant overhaul of its app.
This was confirmed by CEO Evan Spiegel in today's earnings letter to Snap investors, who said that Snapchat will be redesigning its app in a bid to make it more user-friendly.
"One thing that we have heard over the years is that Snapchat is difficult to understand or hard to use, and our team has been working on responding to this feedback. As a result, we are currently redesigning our application to make it easier to use."
"There is a strong likelihood that the redesign of our application will be disruptive to our business in the short term, and we don't yet know how the behavior of our community will change when they begin to use our updated application. We're willing to take that risk for what we believe are substantial long-term benefits to our business."