"For instance, Meta Platforms closed the third quarter with 3.54 billion daily active users and $51.2 billion in revenue. That comes to $14.46 per daily active user. Meanwhile, Snap closed the quarter with 477 million daily active users and $1.51 billion in revenue, which comes to $3.14 per user. Both companies grew their daily active users by 8% year over year."
"Snap also posted a much lower revenue growth rate than Meta Platforms and continues to burn through money. It isn't just Facebook and Instagram, either. Pinterest brought in $1.05 billion in Q3 with 600 million global monthly active users. Snap only delivered $1.51 billion with 943 million global monthly active users, so it's not making as much revenue per user as other social networks. Pinterest, like Meta Platforms, is also profitable, while Snap continues to incur losses."
Snap shares have fallen roughly 30% year-to-date and over 80% in five years amid waning IPO enthusiasm, low revenue growth, mounting losses, and fierce competition. Snap underperforms peers on user monetization: Meta generated $51.2 billion on 3.54 billion daily active users ($14.46 per DAU) versus Snap's $1.51 billion on 477 million DAU ($3.14 per user). Snap's revenue growth lags and cash burn continues. Pinterest and Meta report stronger revenue per user and profitability while Snap remains unprofitable. Major rivals routinely replicate popular features, constraining Snap's competitive moat and investor appeal.
Read at The Motley Fool
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