Snap’s Reasons To Be Cheeful
In the words of Ian Dury there are ‘reasons to be cheerful’ as Snap has released its full year report and after a rocky year it seems to have steadied the ship and the future is looking brighter than it was 4 months ago.
Its full year report shows that there is good reason for optimism, albeit Snap still has challenges to face in 2019. The first of these statistics was that the although there were not anymore daily active users they did not lose any either, which is positive in its own right. Not only did the daily actives not change but also usage remained stable as well despite the constant challenges from Facebook and Instagram, showing that the platform still has enduring popularity amongst its users.
What has stopped the downward spiral? Well Snap’s lenses remain an extremely popular tool on the platform and is a key opportunity for connecting the other users on the platform and with its improved, simplified tools it makes the option more accessible to businesses. When you combine the lenses aspect with the Bitmoji stories which was launched in November, it explains why Snap posted a new record of $390 million for the final quarter, which was up 36% year over year. This overall result beat the Wall Streets expectation of $378 million.
There is still much to do from Snap’s side of things but they have managed to stop the rot which of course was imperative for the platform’s survival. Can they keep this upward trend going? That remains to be seen but there is plenty to be positive about heading into 2019 but Snap will be forever looking over their shoulder at Instagram as if they have a similar year to 2018 it could reverse all the good work at the back end of last year.