Snapchat reported revenues of $404.5 million in 2016, as well as a loss of $514.6 million. This year, watchers expect that Snapchat’s ad revenues will reach nearly $1 billion. By 2018, revenue is estimated to be $1.8 billion. As far as usage, Snap reported 158 million daily active users (DAUs) worldwide. Interestingly, roughly 58% of their users reside outside of North America. In the US, Snapchat is expected to reach 66.6 million monthly active users in 2017, eMarketer estimates. By 2020, that number will grow to 85.5 million.
Among the risk factors, Snap noted that it faces significant competition, which is something the company anticipates will continue to intensify. Facebook and Instagram pose the biggest threats at this point, given that each platform is actively adding Snapchat-like features to their platforms, and both have sizeable user bases in markets where Snapchat is likely aiming to expand its user base to increase its ad revenues.
“The key to Snap’s success at this point hinges on the company continuing to innovate and bring new features to Snapchat in order to differentiate it from the competition and continue to attract new users,” said Cathy Boyle, principal analyst at eMarketer.
Jay & Julia Taylor own and operate Caney Creek Studio. Caney Creek Studio is a video production, digital marketing, and social media management agency.