1/23/2024 0 Comments Double snap meaning on snapchatSnap’s Q1 revenue was less than people expected, and the company said it was due to “seasonality.” Advertisers simply spend less in Q1 following a busy holiday quarter than they do in other quarters.īut as Ben Thompson, who writes an insightful tech and media newsletter called Stratechery, pointed out at the time: Snap’s business should be too young to be impacted by seasonality. Snap’s business is also showing concerning signs. So it’s possible that Snap’s user growth could shoot up again once those emerging markets become a priority, but no one knows when that will be, or if Facebook will have already beat them there with their own product. Snap has not been focused on growing in emerging markets, arguing that the cost of supporting and adding users in emerging markets would be more than they’d make from them in advertising revenue. That’s not the kind of growth Snap investors envisioned 12 months back, and we know from watching Twitter how hard it can get for a public company once user growth slows down. A year later, in Q2 2017, it added just seven million new users. It added 21 million new users in Q2 2016. But there are plenty of other signs here that Snap’s problems are much bigger than simply going public too soon, the most notable of which is the app’s user growth.Ī year ago, Snap was growing quickly. So those who believes that Snap IPOed too early might take solace in the idea that things could improve with time. Education takes time, and Wall Street isn’t always patient. Snap’s chief strategy officer, Imran Khan, said on Thursday’s earnings call that Snap was “working on the education process” with advertisers.
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