Snap Inc has posted better than expected quarterly results. With its share price up 20 percent on the previous quarter, and daily users of its social platform Snapchat now at 187 million, the company seems to be defying critics who said it couldn’t coexist with Instagram.
Revenue is also up: the company took $286 million in advertising income in the year to December 2017. Snapchat recently simplified its advertising platform, making it easier for brands to access the network. These changes appear to be paying off.
Snapchat seems to be bucking the trend which has seen daily use fall at arch rival Facebook (owner of Instagram). At a time when social networks in general are coming under attack for failing to deal effectively with fake news and trolling, Snapchat’s focus on entertainment and ephemerality has clearly helped to shield it.
Snap Inc has been criticised in the past for aspects of its corporate culture. Its apparent lack of diversity and refusal to publish breakdowns of gender and ethnicity among its employees have led to the company being accused of arrogance, sexism and racism.
In 2014 Snap CEO Evan Spiegel came under attack when a series of offensive emails sent while he was at college were leaked online. He made a public apology. Last year, he married supermodel Miranda Kerr in a quiet ceremony. The couple are now expecting their first child. Maybe Snapchat, like its CEO, is finally growing up.
NB: If you were up bright and early on 7 February you might have caught me discussing these points in a live interview on BBC World Service Newsday.