Snap has published some rare good news for investors and advertisers after exceeding expectations on user numbers by holding steady in the fourth quarter, ending a period of decline and raising hopes that the platform could be about to turn the corner.
Across the three months to 31 December Snapchat claimed 186m daily active users, the same as the figure reported for the third quarter and scotching analyst expectations of a further fall.
This was reflected in both revenues and pre-tax losses, with both yardsticks now headed in a positive direction despite flatlining users, a feat attributed to performance ads.
Newly arrived chief business officer Jeremi Gorman is in process of reorganizing Snapchat’s sales team to better serve advertisers with response-led products, a process which should conclude over the next six months.
Gorman commented: “When I came in, I noticed the sales team was set up to get as big as possible as quickly as possible, which oftentimes means that everybody can go after every account. [But] a vertical model really allows us to understand our customers and the industries in which they operate, so that we can be consultative sellers and go deep with those particular brands.”
The bottoming out comes following a spate of departures, including communications chief Mary Ritti, global head of sales Jeff Lucas and product head Tom Conrad.