Last week, Snap Inc. disclosed disappointing earnings through a compulsory SEC filing. The numbers were low enough to impair the company’s ambitions to become the next sensation when it comes to social media networks. On the other hand, the report did not manage to dissuade the CEO so much.
Snap Inc. SEC Filing Revealed $2.2 Billion Loss
Earlier this month, the SEC filing Snap had to perform revealed massive bleeding points in its business. The company recorded a $2.2 billion loss for the first financial quarter. Moreover, the total revenue appeared weaker than expected while the user database experienced a slow growth. These are not good signs, especially for a digital platform that relies on the number of users to secure its market influence.
The SEC filing revealed an increased number of daily active users of 166 million. This marked a 36% evolution in comparison to last year. On the other hand, this performance has barely increased in power through 5% more users than at the end of 2016.
Analyst Jan Dawson at Jackdaw Research interpreted these numbers as a clear direction for Snap. According to him, the platform might never reach the same magnitude of that of Facebook for instance. Instead, this company might remain influential over a niche market and certain population segments.
Evan Spiegel Will Continue to Improve His Brand through Creativity
At the same time, rivals are suffocating Snapchat with implementations of cloned features. Facebook and Instagram are copycatting Snapchat core attractions for their own platforms. As such, competition continues to spend dollars on what seems to be an attempt to leave Snapchat with no more original points of interest.
“You have to get comfortable with the fact that people are going to copy you if you make great stuff.”
On the other hand, Evan Spiegel, Snap CEO, is not giving in to such pressure. On the contrary, he didn’t avoid highlighting the fact that competitors are gaining dominance by hiding behind copied innovations. However, Snap will never rely on second-hand ideas, but it will continue to improve the industry through creativity.
Image source: 1