Although Snapchat appears to be gaining popularity among social media users, the official numbers may suggest otherwise. Snap CEO Evan Spiegel delivered the company’s first earnings report since its IPO and the result was less than impressive. The report sent the stock down more than 20 percent, barely beating out its IPO price of $17. Spiegel though, remains confident in the company’s structure and future in the highly competitive social media industry.
Speaking with the Wall Street Journal, Spiegel was repeatedly questioned about how his platform is performing compared to Facebook. While Mark Zuckerberg’s enterprise continues to grow at a steady rate, the same is not true for Snapchat. Spiegel was honest with his answers, saying that Snap offers different services to users than Facebook does. He also directly discussed the issue at hand: slow user growth.
Spiegel said Snapchat is not set up to succeed the same way that Facebook is. He says Snap will succeed because it offers more quality than other social media platforms. The CEO then criticized common social media growth tactics encouraging listeners to connect with every one of their personal contacts. Instead of aggressively chasing new users, Spiegel insists that his company is focused solely on improving their product.
The 26-year-old billionaire also offered a few glimpses into what’s next for Snap. The company is planning a video series, available only through Snapchat. Could this be a key for the company to keep up with streaming giants like Hulu and Netflix, as well as Facebbok? If Snap sticks with their commitment to quality, then their growth may not rise rapidly, but it could be the best strategy for long-term viability.
Perhaps Spiegel is smart to avoid comparisons with Facebook. That tactic blew up in the face of competitor Twitter, which once boasted about the inevitability of it becoming the number one social media source for users around the world. For now, Spiegel is keeping things simple. Snapchat may be growing at a slower rate than expected, but brighter days seem to be right around the corner.