Snapchat Snaps Back: Is Fresh Content the Key to Snap’s Longterm Success?

Pictures-and-messaging app has stopped losing users; now it needs its shows to drive more downloads in 2019

Last Updated: February 6, 2019 @ 2:18 PM

Big Tom Callahan, played by Brian Dennehy in the 1995 classic “Tommy Boy,” seems to have been wrong when he proclaimed “you’re either growing or you’re dying” at least when it comes to Snap Inc.

While Snapchat’s trademark pictures-and-messaging app isn’t growing at all, according to its latest Q4 financials, the company’s stock price rocketed 22 percent on Wednesday.

This was a company left for dead — Instagram’s roadkill. What the hell happened?

In brief: Snapchat reported on Tuesday, after the market closed, that it ended the fourth quarter with 186 million daily active users, the same number it had the previous quarter.

Stalled growth is normally the kiss of death for major tech companies. In Snap’s case, though, the news was welcome after the company reported losing 5 million DAUs combined during the second and third quarter in the wake of a botched app redesign.

Something that did grow, however, was revenue. Snap brought in $390 million — beating analyst expectations — while severely cutting back on its losses.

The challenge will be to maintain growth in both revenue and user base…

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