Snap’s IPO paperwork shows the company does things differently.
The yellow ghost filed an S-1, announcing an intention to list on the New York Stock Exchange. A couple of things in the paperwork jumped out at me:
- It’s the first company I can recall seeing use the word “barf” in an official release to market.
- Also the first company I can recall discussing the bathroom habits of its users:
we eat, sleep, and poop with our smartphones every day.
- They’re the first company to issue only non-voting stock on an American stock exchange at IPO. This enables the founders to maintain control over the company despite it being a listed entity. Tech companies usually give founders additional voting rights (see Alphabet, Facebook, Amazon), but still give external investors a minority vote.
- They’ve called out Facebook by name for cloning their Stories feature, highlighting IP theft as a key strategic risk. Brexit is also listed as a risk of the business.
Some other interesting Snapchat stats:
- 158m people use the app every day, creating over 2.5bn daily snaps
- 25% of daily active users post a picture to their Story
- Users visit the app 16 times a day on average
- Each user spends an average 30 minutes per day inside the app
- The majority of user engagement occurs on iOS, not Android
- This stat surprised me: user engagement falls during summer periods.
- Snap more then tripled their workforce during 2016, growing from 600 employees to over 1850.
- Snap runs on Google Cloud, not Amazon Web Services.
- Advertisers on Snap get serious user engagement:
To generate excitement for X-Men: Apocalypse, 20th Century Fox ran a Sponsored Lens campaign that let users turn themselves into the iconic characters in the upcoming movie. In one day, people spent a collective 56 years playing with the Sponsored Lenses. They also incorporated the Sponsored Lens into Snaps they shared with their friends, which yielded over 298 million views for the campaign. The campaign resulted in a 13 percentage point increase in brand awareness, 7x the mobile norm. The Sponsored Lens also drove a 25% lift in theater-watch intent, over 3x the mobile norm.
To boost awareness for its “Rule Yourself” campaign, Under Armour partnered with us to deliver the perfect post-workout Geofilter. The Sponsored Geofilter was viewed over 60 million times and created a 20 percentage point increase in ad recall. More importantly, the campaign yielded a 78% increase in purchase intent, over 5x the mobile retail campaign norm, as measured by Millward Brown.
And my favorite quote from the S-1:
While we understood why people used social media, we didn’t want to make a traditional profile on Snapchat because we knew from our experience with delete by default that people didn’t like the burden of accumulating perfect moments for their friends. Our community wanted to express themselves and tell stories in a way that embraced change and growth.