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Snap Revenue Surges 72% on User Growth, Advertising Gains

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Re: Snap Revenue Surges 72% on User Growth, Advertising Gains

#21

I thought Snap was not doing so well. I watch Gary Vaynerchuck and it seems like every guest he has all say the same thing, "Snap used to be great for me, now no1 is there".

Snap does suck for brands and "internet personalities." But that's exactly why it works so well for small groups and close friends.

The question remains, is there money in that?

Re: Snap Revenue Surges 72% on User Growth, Advertising Gains

#22
post #10

Earlier quoted context omitted.

Just wondering why you say Tacobell isnt advertising on Snap? They were part of a very publicized campaign a couple years ago [1], are you saying they've stopped? [1] https://www.marketingdive.com/news/taco-bells-cinco-de-mayo-...

I meant it as an example of most people advertising of Snapchat don't sell things but are lifestyle brands. I should not have used that example.

Taco Bell is a lifestyle.

Think outside the bun for a change.

Re: Snap Revenue Surges 72% on User Growth, Advertising Gains

#23
post #2

A loss of $3.45 Billion for the year - that is absolutely mind blowing. That is a net loss of USD $393,000 per hour for every hour of 2017.

Like other people have mentioned, this is mainly stock compensation related, but the funniest part is that they tag this loss % as "Not meaningful" in their financial statements. Just a not meaningful $2B loss :)

To be fair, it's a pure accounting loss, not an actual loss (of money in the bank) for the business. So in that respect it doesn't seem unreasonable to do.

Re: Snap Revenue Surges 72% on User Growth, Advertising Gains

#24
post #9
post #2

A loss of $3.45 Billion for the year - that is absolutely mind blowing. That is a net loss of USD $393,000 per hour for every hour of 2017.

Companies don't die when they lose money. They cut expenses or they get acquired. Companies die when they have no revenue. If I were an investor in Snap I would much rather see them raise revenue then cut expenses or decrease loses. Their loses are considered in the stock price.

It's clearly not that simple. Barring an absolutely horrendous product, one can almost always purchase $100 of revenue for $105.

Re: Snap Revenue Surges 72% on User Growth, Advertising Gains

#25
post #5
post #2

A loss of $3.45 Billion for the year - that is absolutely mind blowing. That is a net loss of USD $393,000 per hour for every hour of 2017.

Eh, it was all booked in 2017. But almost $2 billion of this loss actually accrued over many years as stock options compensation.

Hello 1999!

Re: Snap Revenue Surges 72% on User Growth, Advertising Gains

#26

I absolutely hate Facebook, but I think Snap is really getting 'social media' right. There's no political nonsense or advertising being shoved down my throat, just endless cat videos and memes from my friends the way it should be. When my friends post something, it's guaranteed I will see it. There are options for group chat and 'forum' style communication, but the core experience is intimate and private. They're doi…

Just the content from people you're directly connected to.

What a novel approach to online socializing, said IRC, MSN, AIM, ICQ...

I forget though, that SV and places like Ycom can't resell old tech to investors.

Pets.com taught us you have to just keep cranking out the hits, or they'll get wise to the hollow value really being proposed.

Re: Snap Revenue Surges 72% on User Growth, Advertising Gains

#28

I thought Snap was not doing so well. I watch Gary Vaynerchuck and it seems like every guest he has all say the same thing, "Snap used to be great for me, now no1 is there".

Snap does suck for brands and "internet personalities." But that's exactly why it works so well for small groups and close friends.

It works well for medium-scale “personalities”. A lot of content creators (streamers / IG model / porn star / etc) offer snapchat access in exchange for a certain tier of patronage

Re: Snap Revenue Surges 72% on User Growth, Advertising Gains

#29
post #4

Snap users and advertisers have responded very positively to the clear division between user generated content and advertising. If you are not a Snap user, or if you haven't used it in awhile, I encourage you to check it out. Snap advertisers are mostly lifestyle brands that want to engage with their users in a new way. Tacobell isn't advertising on Snap, but Popular Mechanics is. When a user clicks on Popular Mechan…

Why would I want to "engage" with "lifestyle brands"? Am I missing something here? What does that even mean?

Re: Snap Revenue Surges 72% on User Growth, Advertising Gains

#30

I absolutely hate Facebook, but I think Snap is really getting 'social media' right. There's no political nonsense or advertising being shoved down my throat, just endless cat videos and memes from my friends the way it should be. When my friends post something, it's guaranteed I will see it. There are options for group chat and 'forum' style communication, but the core experience is intimate and private. They're doi…

This fundamental property of "show me only things from people I explicitly added, and show me everything they post (ideally in reverse chronological order)" is what many (myself included) seem to want from social media.

Sadly, it seems to be directly at odds with what companies want, because social networks often start off with having that property and lose it as they need to make the investors happy.

- Facebook -> hasn't been true in a looooong time

- Instagram -> hasn't been true in a few years

- Twitter -> I think it's not true anymore? Might be if you click the right options in your settings, but who knows for how long

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