Last week, Snapchat’s parent company “Snap, Inc.” filed an initial public offering to go public on the New York Stock Exchange in the next couple of months. The company is reportedly going to seek a $25 billion dollar valuation. To compare: Facebook’s valuation was $104 billion when it went public in 2012. So, Snapchat believes it’s worth $25 billion, which validates its turndown of Facebook’s $3 billion offer a few years ago.
Many believe the U.S. economy is sitting atop a fragile tech bubble that could burst at any moment, sending our economy into a freefall like we saw in 2008 with the housing bubble. Are companies like Snapchat and Facebook really worth billions of dollars?
They are, but that is besides the point of this blog post. The question this post seeks to address is this:
Does anyone actually use Snapchat anymore?
I mean, Instagram introduced Instagram Stories, right? That’s a Snapchat killer right there.
Here are five statistics Snap, Inc. provided at the filing of their initial public offering that surprised me:
That’s a lot of Snaps. The last estimate I saw for Twitter was about 500 million tweets per day.
I am having trouble finding a link to prove this, but this surpasses Twitter for daily active users, I believe.
This is an important statistic. This means that at least 60% of Snapchat users are creating content. A significant percentage of the 40% who don’t post content are probably consuming it. It is an active platform. Facebook would love to have these activity numbers, I bet, as they have a larger base, but higher inactivity.
If I remember correctly, 2016 was the first full year Snapchat had access to significant ad revenue. They lost a lot of money in 2016 too, but most of the loss was actually investments into technologies to make their ads more effective and ultimately produce more money in the long run.
Snapchat isn’t going anywhere anytime soon. It’s here to stay.
Instagram will have to be OK coexisting for at least a little while longer.
I am interested to see what happens as Snapchat users age—will Snapchat age with its young users, or will it continue to position itself as a platform more tailored for young people?
I bet the platform ages with its base, as that would likely be the most profitable decision.
Snapchat isn’t dying, but you can bet it will continue to evolve and adapt to the needs and uses of its users.