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Snap has received a lot of attention since its Nasdaq IPO in March. On May 10, Snap finally turned in its first report card as a public company — its results for the first quarter of fiscal 2017, which ended March 31.
Snap reported first-quarter revenue of $149.65 million, up 286 percent from a year earlier, but still short of expectations of $159 million. The net loss was $2.2bn, or $2.31 a share. Adding to the market’s disappointment, Snapchat added 8 million daily active users in the first quarter of fiscal 2017, bringing the total to 166 million daily users, below expectations of 168 million.
Source: www.snap.com
Notably, the bulk of Snap’s $2.2 billion first-quarter loss — $750 million of which went to CEO Evan Spiegel — was related to stock awards, while quarterly operating expenses were only $196 million. After the news broke on May 10, Snap’s shares plunged 23% after hours and fell as much as 25% to $17.25. That’s a new low, close to the $17 IPO price.
Source: Google Finance
Why did Ivan, the post-1990 CEO, dare to give himself a bonus of 700 million yuan?
Spiegel is one of those post-90s bosses who has always been on a roll. His legacy makes it less surprising to see him award himself a $700 million bonus.
Spiegel, who was born in 1990 at the age of 27, has amassed a personal fortune of $2.6 billion, according to the 2017 Forbes Rich List.
Ask Spiegel to reflect on his 27 years and he will say: “I am a young, educated man. I’m very, very lucky. Life is not fair. So if life is unfair — it’s not about hard work, it’s about how it works.” Spiegel’s upbringing taught him how to smartly use mechanics to succeed at an early age.
Speelger was born with a gold spoon in his mouth
The eldest son of two famous lawyers, Spiegel lived an enviable life in one of Los Angeles’s wealthiest neighborhoods.
At the age of 17, Spiegel was a fierce spender. He received $250 a month from his father, but he spent $4,000, half of it on food, clothes, car washing and half on emergency expenses. Although his bank account was often overdrawn, Spiegel asked his father for a BMW 535I worth $75,000, writing: “Cars give me pure pleasure and I feel my hard work is worth a BMW.” He was already driving a 2006 Cadillac ESCALADE.
Mr Spieger showed business flair from an early age
At age 15, Spiegel learned how to be a journalist at Crossfire, a Crossroads newspaper. One of the course assignments required students to sell a certain number of ads. Spiegel was good with people and supported by local businesses.
“I love the brand, I love the lifestyle. I can’t leave the drink. I’m joining them.” So through many efforts, he got the opportunity of “unpaid internship”. At Red Bull, he learned how to market, how to design pictures and “how to throw a party.”
While in college, Spiegel went to Stanford to study product design, where he met Reggie Brown and Bobby Murphy, the co-founders of Snapchat. The three worked together in Spiegel’s home, brown providing the idea, Murphy developing the app and Spiegel coordinating it, and within a month Snapchat was developed and launched in July 2011. With only a few credits left to graduate, Spiegel decided to drop out and work full-time at Snapchat. In 2012, the team did most of the work on the Snapchat app.
Speelger had a tremendous personal charm
In many people’s eyes, Snapchat’s success is largely based on the vision of its founder, Evan Spiegel, who has kept a tight grip on the company even as it has grown, and without his approval, nothing can be done.
Spiegel is very hands-on, shuttling daily between the company’s offices in a black Land Rover, with bodyguards at his side.
Spearger’s office, at the top of the building, was a secret, locked office. “The first time I saw it, IT was clear to me that Spiegel was an untouchable god,” says a former Snapchat executive. He decides everything, but he also looks down from above.”
Even better than the one-man show were The spelger gossips
In 2015, various websites broke the news that Spiegel had fallen in love with model Randa Kerr, who was seven years his senior and divorced with a child, and announced their engagement after a year of dating.
Spiegel’s ex-girlfriend lucinda Aragon is also a supermodel. Spiegel and Taylor were also rumored to have had a flirty relationship, meeting and dating for several months in December 2013.
2.Snap wasn’t the only company to see its first earnings report die
In fact, many tech startups die after their first earnings reports: Facebook, Twitter, LinkedIn, Yelp, and others all saw their shares drop an average of 14.1% the day after their first earnings reports as public companies, reflecting investor caution.
Take Facebook and Twitter, for example.
Facebook’s stock fell 11.7 percent the day after its first earnings report in July 2012, while Twitter fell 24.2 percent in February 2014.
Source: www.cnbc.com
While Facebook and Twitter have both struggled in the past, the dynamics of the two companies are very different.
Facebook currently has Whatspp, Facebook, Messenger and Instagram. Facebook reported 1.28 billion daily active users and 1.94 billion monthly active users for the first quarter of 2017. Facebook’s revenue, net income and earnings per share all beat expectations by a wide margin.
Twitter reported revenue of $548 million in the first quarter of 2017, down 8% from the same period last year, and a net loss of $62 million, down 23% from the same period last year. Twitter’s average number of monthly active users, at 328 million, is up a slow 6% from a year ago. Twitter’s stock is down more than 55% since it went public.
So it’s not clear from current trends alone whether Snap will be the next Facebook or Twitter.
3.Snap’s current strengths and difficulties
Advantage:
Snap’s evening format attracts a large number of young people
Different from Facebook and other social media that “record everything”, Snapchat chooses to “burn after reading”. Not only text messages and photos can burn after reading, but Snapchat’s “Story” circle of friends will also self-destruct after a period of time. It’s a big draw for young people, a great way to kick off hormones and get rid of baggage without having to worry about leaving a mark online, and has gained a huge following.
Snap is young, creative, and even copied by Facebook
Snap is undeniably a young and creative company. “If you want to be an innovative company, you’ll enjoy it when people copy your product,” Spielger said in a public response to the Facebook copycat controversy. Snap is also proving its commitment to innovation by filing a new patent for AR glasses and possibly launching more smart hardware products in the future.
Dilemma:
Strong competition from Facenook
Facebook’s existence as a social juggernaut is a huge handicap for Snap.
Facebook has been accused of copying many Snapchat features, such as a new feature called Instagram Stories that Facebook-owned photo-sharing app Instagram introduced last summer. The feature, similar to Snapchat Stories, allows users to share photos and videos with friends while they disappear after 24 hours. Notably, Instagram Stories has overtaken Snapchat Story in terms of users.
Slow user growth
Snapchat’s user growth rate is slowing down.
More users means more value to investors, and much of the plunge in Snap’s share price stems from investors being put off by lower-than-expected daily active users.
Source: TechCrunch
Google/Facebook dominate the AD market, and Snap can’t compete
Most of Snapchat’s users are in the U.S. and Europe, accounting for three-quarters of all users, while Asia’s contribution is minuscule by comparison. Snap also relies heavily on North America and Europe for its advertising revenue. According to eMarketer, Snap currently has less than 1% of the global digital AD market, while Google and Facebook dominate.
4. What’s it like working at Snap?
Snap’s enterprise structure is run by a senior management team that actively distributes stock to employees, but that team lacks the experience to turn successful new products into successful businesses.
In fact, Snap employees have long been polarizing in their evaluations of their work.
So what’s it really like to work at Snap?
Good salary
According to Glassdoor, Snap’s average Base salary for software engineers is around 13K, no Bonus, no relocation, but will give huge shares, level1 320K, Level2 645K, Level3 1m, The mean value is 688K. Many people were attracted to Snap’s offer: “IT was an offer I couldn’t turn down,” one employee said.
For now, the temporary drop in Snap’s stock price doesn’t affect employees much, since rank-and-file employees can only resell their shares six months after the company goes public.
What’s more, Snap grants 10 percent, 20 percent, 30 percent, 40 percent stock, which means the longer you stay with the company, the more stock you get.
High working intensity
Snap’s work is hard compared to that of big IT companies like Facebook and Google. Because Snap was a late starter and small, each employee had to take on a lot of work. As a startup company, it will face all kinds of difficulties, so it can make employees feel a little tired.
Diversity of work environment
Unlike other IT companies, Snap has chosen not to make its home in Silicon Valley, but to set up an office in LA. The diverse environment of LA is especially suitable for young people, full of energy and fun, and the pressure of life in LA is relatively low compared with that in Silicon Valley.
Snap has a number of separate offices, each facing the ocean, where employees can take two steps to relax on the beach, and where food is available. However, such a fragmented distribution also causes problems in the cooperation between the various teams, each team is like an isolated kingdom.
Closed corporate culture
The counterpoint to Snapchat’s disappearing features is the company’s culture of secrecy. Keeping employees from knowing the goals or strategies of other teams through a super-secret organizational structure. The only person in the entire company with a good grasp of what the company is doing next is Spiegel, whose strident views on privacy have followed Snapchat’s trajectory. Employees of the company cannot add their job titles and job descriptions on social networks, they cannot even talk about company-related topics in public, and there is a lack of communication within the company.
“There’s no transparency at Snapchat,” says one former Employee. Such a corporate culture can be a bit cold for employees.
High pressure of competition
Snap is a young company, mostly staffed by young people whose engineers are not all tech-savvy geeks. Instead, Snap employs a large number of people with backgrounds in Wall Street and the entertainment industry. While Snap’s boss, Spiegel, has not been kind to engineers, the upward trend in the business is giving them hope for advancement.
The above is just for your reference. Since everyone is different, whether Snap is worth it or not needs to be considered by yourself
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