"The move comes as the 5,000-person company faces mounting pressure. Advertising revenue growth flatlined at 4% in the second quarter, and North American daily active users declined 2% to 98 million, a troubling sign in Snap's most important market. Spiegel does highlight one bright spot: Snapchat+ subscriptions now generate over $700 million in annual recurring revenue from more than 15 million paying subscribers, making direct revenue "one of Snap's fastest-growing opportunities.""
"Snap is also doubling down on Specs, building its own AR glasses that Spiegel envisions will replace smartphones entirely. He calls them a "a once-in-a-generation transformation towards human-centered computing." (Meta and Google see the same future, partnering with Ray-Ban and Warby Parker, respectively.) Spiegel acknowledges the current stock price "reflects doubt" but writes that there's "startup-style return potential" at its roughly $12 billion valuation."
Snap is reorganizing around small 10–15 person "startup squads" to increase speed and competitiveness. The 5,000-person company faces pressure after advertising revenue growth flatlined at 4% in Q2 and North American daily active users fell 2% to 98 million. Snapchat+ subscriptions now generate over $700 million in annual recurring revenue from more than 15 million paying subscribers, creating a strong direct-revenue channel. Snap is investing in Specs AR glasses that Spiegel envisions as a long-term replacement for smartphones, and the company notes a roughly $12 billion valuation amid market skepticism and significant prior market-cap declines.
Read at TechCrunch
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