- Snapchat scrapped its simplified three-tab redesign after losing 1 million North American users in Q1 2025. It will now test a "refined" five-tab layout that restores popular features like Snap Map and Stories.
- Feedback from core users revealed that the simplified design was less intuitive, particularly for those who rely on features like Stories and the Map tab. The five-tab layout aims to strike a balance between simplicity and content discovery.
- Snap reported a 14% year-over-year revenue increase to $1.36 billion and saw growth in global DAUs and Snapchat+ subscribers. However, North American user losses raised concerns.
- Despite challenges in North America, Snap is focusing on increasing engagement through improved ad products, AI-driven solutions, and growing the Snapchat+ subscription.
- Snap plans to adapt its strategy to ongoing macroeconomic conditions, with a focus on maintaining strong user engagement and monetizing new features like AI and augmented reality.
In a significant move, Snapchat has reversed its decision to simplify the app’s design after facing a decline in its North American user base. The decision, announced alongside Snap's Q1 2025 earnings report, marks a shift in strategy aimed at regaining user engagement, particularly in a crucial market where the platform has seen user losses.
The Original Redesign: A Simplified Three-Tab Layout
Snapchat’s initial redesign, rolled out in September 2024, aimed to simplify the app by consolidating its functions into three core tabs: Chat, Camera, and Spotlight.
Source: Snap
The plan was to streamline the user experience, making it easier for users to engage with the platform, particularly focusing on the video-sharing features of Spotlight, Snapchat's answer to TikTok.
However, feedback from users, especially the most engaged and frequent users of the app, revealed that the simplified design wasn’t well received. Key features like Snap Map and Stories were removed, leading to complaints from power users who felt disconnected from the app’s more familiar navigation.
These users, who make up a significant portion of Snapchat’s active user base, found the new layout to be less intuitive and harder to navigate.
The Response: A Refined Five-Tab Layout
In response to this backlash, Snap has abandoned the three-tab design in favor of a “refined” five-tab layout. This new design brings back Snap Map and Stories, two features that users heavily relied on, while still enhancing Spotlight's visibility by placing it directly next to the camera button.
Snap’s decision to return to the five-tab format shows that user feedback remains a driving force behind product development. By preserving the layout that many users are familiar with, Snap hopes to reestablish its connection with its core audience while also improving content discovery and engagement.
Declining North American Users and the Need for Change
One of the major reasons behind the redesign shift is Snap’s declining user numbers in North America. In Q1 2025, the company reported a loss of 1 million daily active users (DAUs) in the region, dropping from 100 million in Q4 2024 to 99 million.
North America remains a critical market for Snap, not only for its user engagement but also for revenue generation. The decline in this market prompted the company to reevaluate its approach, particularly after the new layout failed to gain traction.
Despite this setback, Snap reported solid growth globally, reaching 460 million DAUs, up from 453 million in the previous quarter. The company’s revenue for Q1 2025 was $1.36 billion, marking a 14% year-over-year increase. This growth was driven by improvements in its advertising business and an uptick in subscriptions to Snapchat+, its premium offering.
In addition, the revenue was driven by the success of its advertising tools, particularly for small and medium-sized businesses. Snap’s growing Snapchat+ subscription service contributed to the company’s revenue stream, with 15 million subscribers, marking a 5 million increase compared to the same quarter last year.
However, Snap’s advertising revenue faced some headwinds in April, with the company citing macroeconomic uncertainty and a slowdown in ad demand. Despite these challenges, Snap remains optimistic, with global DAUs continuing to grow and revenue increasing year over year.
Snap's Future: Balancing Innovation and User Expectations
Looking ahead, Snap’s primary focus will be balancing innovation with user expectations. The redesigned five-tab interface is part of this broader strategy to improve user experience and engagement, but Snap is also investing in AI-driven advertising tools, AR features, and the continued growth of Snapchat+.
The company’s Q1 earnings call also revealed that Snap’s investments in AI tools, like My AI, have seen impressive results, with U.S. users increasing My AI usage by 55% year-over-year. The addition of new AI and AR features later in 2025 is expected to further enhance user engagement and monetization opportunities.
