in ,

Snap finally joins the league of profitable publicly owned company

After five years of operation as a publicly-traded company, Snap has declared profit. The social network posted a $23 million profit for the last quarter of 2021.

Snap took in $4.1 billion in the quarter, making the profit minuscule. Nevertheless, it was a massive milestone for the company. The company has struggled with growing its user base, but the last quarter was a different story. In the last quarter alone, the social platform added 13 million daily active users, DAU, to end the year with 319 million DAUs. It was the second consecutive growth quarter for Snapchat. Overall, DAUs grew by 20 percent in the year.

The increase in DAUs is even more significant, coming in the same quarter that Facebook reported a loss. The older social network has struggled to attract and retain younger users on the platform but reported its first loss ever. One million users in the North American market, the most valuable, stopped using the platform in the quarter, and it wiped off more than $200 billion from Facebook’s parent company valuation.

Snap’s share price went in the opposite direction, gaining more than 50 percent on the news of its milestone.

However, Snap is also affected by the new privacy policy instituted by Apple, one of the richest user data sources for targeted advertising. The outspoken CEO, Evan Spiegel, called the policy a frustrating setback. But it looks like Snap is handling the setback better than its peers, with CFO Derek Andersen attributing the minimal loss to his company’s existing privacy-centric operation. He noted, “We built our business with privacy by design at the core of our products, including our advertising platform,” he said. “As a result, the impacts of the changes that we’ve seen on the iOS platform are likely to be experienced differently for business than perhaps for others.”

Spiegel also touched on how the pandemic has affected how people used Snapchat. They posted fewer stories and viewed fewer stories as well. However, they watch more premium content and Spotlight content. Spotlight is a clone of TikTok, featuring short videos. The feature has helped Snapchat its creators’ community, with more than 12,000 paid for their content in the first year of the feature’s release.

Other highlights of the report are:

  • Our 18 New Year’s Eve Lenses generated more than 7 billion impressions.
  • We released several enhancements and new features to Lens Studio, including a new Sounds Library, real-world physics, world mesh, and an API library for real-time data.
  • Lens Creators can now include a Call-to-Action link within a Lens, making it easier for Lens Creators to grow their businesses.
  • The number of Spotlight viewers subscribing to a Creator more than doubled relative to the prior quarter.
  • Over 20 Spotlight creators are also syndicating Shows on Discover, including beauty entrepreneur Patrick Starrr and crafting expert Lauren Riihimäki, who each reached 5 million Snapchatters with their Shows.
  • We renewed our partnerships with three of the top premium broadcasters in the world: NBCUniversal, ViacomCBS, and Disney, who are responsible for popular shows on Discover including The Rundown, MTV Presents, and ESPN GameDay, respectively.
  • In Q4 2021, 25 different Discover partners each reached over 50 million unique Snapchatters globally, including Universal Music’s Rebel Labs, social publisher Jungle Creations’ lifestyle content, and Team Whistle’s sports content.
  • In Q4 2021, we added more than 160 new international Discover channels and onboarded new partners including Seven.One Entertainment Group in Germany and Canal+ in France.
  • We partnered with Kim Kardashian West and Kris Jenner to launch the Kindness Spotlight Challenge, which generated the most submissions for a challenge to date; we partnered with Mariah Carey to launch her hit song “All I Want for Christmas is You” via Sounds on Snapchat and as a Spotlight Challenge, which inspired the creation of over 3.5 million videos featuring the song and over 300 million views.
  • Our new Snap Original “The Me and You Show,” which stars Snapchatters and their friends using our Cameos feature, reached over 50 million viewers.

Written by HackerVibes

Twitter welcomes more people to use the downvote feature

HoloLens boss Kipman denies rumors Microsoft has abandoned the mixed reality headset