Kakao CEO Chung Shin-a mentioned Friday the corporate’s flagship cellular messenger KakaoTalk confirmed almost a ten p.c improve in customers’ common app utilization time after a Sept. 23 replace that sparked nationwide complaints, describing the change as “a constructive shift” within the app’s site visitors high quality.
Throughout the firm’s earnings name for the third quarter, Chung mentioned the corporate confirmed rebounds in main indicators after the replace, with the typical each day utilization time for KakaoTalk rising from the third-quarter common of 24 minutes to just about 26 minutes after the replace.
“We consider it’s significant that the utilization time has begun to point out indicators of rebound from its regular downtrend,” Chung mentioned. “Even in the course of the distinctive circumstances of the COVID-19 pandemic, the typical each day utilization time per consumer elevated by solely about 10 seconds, so we consider that rising the utilization time on a messenger platform is a extremely difficult process.”
On Sept. 23, the corporate launched a sweeping replace to the interface of the nation’s largest messaging app, changing a list-style format for the app’s “Pals” tab with a feed that reveals photographs from contacts’ profiles, much like Instagram.
Since KakaoTalk robotically saves contacts by consumer cellphone numbers, this triggered complaints that the app grew to become “a social media app that follows a whole lot and even 1000’s of undesirable contacts.”
Customers scrambled to seek out methods to roll again the perform whereas criticizing the corporate for exploiting KakaoTalk’s standing as a necessary piece of digital infrastructure in Korea. Following the announcement of the replace, Kakao’s inventory fell 4.67 p.c to 63,300 received, then dropped one other 6.17 p.c to 59,300 received on Sept. 26.
Regardless of the backlash, the replace ultimately led to an extended common use time as folks started scrolling by the brand new feed.
“Whereas site visitors within the ‘Chat’ tab stays steady, the utilization time within the ‘Pals’ and ‘Now’ tabs has elevated by greater than 10 p.c in comparison with the third-quarter common after the replace, as customers discover and uncover content material,” Chung mentioned.
“We see this as a constructive change that the platform’s site visitors high quality has improved, as consumer actions, which had been concentrated in chat rooms, at the moment are increasing to different tabs throughout the platform.”
To handle consumer complaints, Chung mentioned the corporate will refocus on KakaoTalk’s core messenger features. Kakao mentioned it would proceed bettering the service by incorporating consumer suggestions and full the revamp inside the fourth quarter.
On the left is an up to date feed with photographs from contacts, and on the precise is the older list-style contacts format for KakaoTalk. Graphics by Cho Sang-won
Kakao posted 2.09 trillion received in gross sales and 208 billion received in working revenue within the third quarter of this yr, up 9 p.c and 59 p.c year-on-year respectively, a brand new quarterly earnings excessive for the corporate.
Kakao attributed the enhancements to strong gross sales development in KakaoTalk’s enterprise messaging, which confirmed a 22 p.c year-on-year improve in income.
Platform companies, reminiscent of KakaoPay and Kakao Mobility, posted 24 p.c year-on-year development in gross sales to succeed in 452.7 billion received. KakaoPay noticed strong income development in its securities and insurance coverage items, whereas different data-based platform companies logged steady outcomes, the corporate mentioned.
“This yr, Kakao has targeted on bettering the effectivity of its governance whereas strengthening its present enterprise portfolio,” Chung mentioned. “From subsequent yr, we’ll reveal how AI will evolve into a very powerful new income supply that ensures sustainable development.”
