Snap Inc (NYSE: SNAP), on Thursday, said it’s on track to surpass 1.0 billion monthly active users over the next two to three years. Shares still ended about 4.0% down today.
Other updates from Snap’s investor day
Snapchat now has over 750 million monthly active users
300 million use Spotlight (TikTok competitor) every month
U.S. users, on average, open Snapchat nearly 40 times a day
Snapchat+ (paid service) now has 2.5 million subscribers
In comparison, Pinterest has 450 million MAUs currently while TikTok is already well above 1.0 billion. Snap stock is up more than 20% for the year at writing.
At its investor day today, Snap Inc also teased its new products, including 3D Snap Map and Communities. The updates arrive only weeks after the social media company reported its worst revenue growth in a quarter ever (read more).
CEO’s take on direct response advertising
Also on Thursday, CEO Evan Spiegel said the near-term focus was direct response (DR) advertising that’s beating brand-oriented business in rate of growth. Speaking with CNBC’s Julia Boorstin, he said:
We’ve been working hard to help people measure advertising in new ways using things like our conversion API, making improvements in application to the way people engage with ads, and recalibrating our machine learning models.
DR currently makes up roughly two-thirds of the company’s revenue and was central to driving its ad revenue CAGR of more than 50% over the five years that ended in 2021.
The chief executive also said that Snapchat for advertising was “differentiated” versus Netflix and other streaming platforms.
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