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5 things you need to know about Snap’s IPO

Matt Kapko | Feb. 10, 2017
Snap is preparing for one of the most anticipated IPOs in years. The company revealed some surprises and important details about its business in a new filing.

“If our [DAUs] growth rate slows, our financial performance will increasingly depend on our ability to elevate user engagement or increase our monetization of users,” the company wrote in the filing. “We anticipate that the growth rate of our user base will decline over time. If we fail to retain current users or add new users, or if our users engage less with Snapchat, our business would be seriously harmed.”

5. User engagement statistics are phenomenal

Snapchat borders on addictive behavior for many of its users. Snapchat’s users collectively send 2.5 billion “snaps” per day, more than 60 percent of the app’s DAUs use the chat feature to send snaps and talk with friends and 25 percent of Snap’s DAUs post to their “Story” every day.

Users also visit Snapchat an average of 18 times each day, but the level of return engagement fluctuates largely according to the age of each user, according to Snap. Users 25 and older visited Snapchat 12 times and spent 20 minutes on the app every day during the final quarter of 2016. Younger users, however, visited Snapchat more than 20 times and spent more than 30 minutes on Snapchat every day during the same period.

 

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