Snap Inc. is growing day by day, but not in a profitable way

Snap continues to release a new and innovative product features that are remarkable in its true sense, but who would have thought that it will cost Snap more than it will benefit the company. Recently, Snap released the information about the loses that the company bore due to the introduction of innovative features.

Just in this past quarter (i.e.: Q4 2019), the company claimed that its net loss increased $49 million YoY to $241 million. Although there are monetary loses, but the company keeps on growing its user base, which has now reached 218 million due to an addition of 8 million users in this quarter.

Snapchat reached 218 million daily active users

The CEO Evan Spiegel of Snap commented that the company is expected to grow financially in the coming years as we are heavily investing in supporting real friendships on Snapchat. The company is expanding vigorously on a global scale along with augmented reality and much more.

Spiegel said that he still believes that Snapchat is not properly monetized, which might target marketing department of the company for not exploring more ways to utilize the platform’s tendency in bringing the advertising money.

Marketers these days have more options when it comes to advertising, which is why Snapchat is not getting the attention that it deserves in the industry. Spiegel spill the beans that the company is working on technology and in targeting specific users on their platform for ads.

Snapchat has brought so many new innovative features in the market including 3D paint on selfies, Bitmoji characters, and whatnot. The company is still working on the gaming sector. Snap is also working on ad products, as predicted from its collaboration with McDonald’s and Coca-Cola. Snapchat needs to works on its scale if it wants to monetize properly in the future.

Read next: Snapchat introduces new ‘deepfake’ feature worth over $160 million


Featured Photo: AP

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