The news: Snap outlined plans to expand revenue to $6 billion in 2023 and to boost Snapchat's user base by 30% to 450 million in a memo by co-founder and CEO Evan Spiegel distributed to staff on September 6.
Some highlights: It won’t be easy, but credit Spiegel for outlining a vision for how the company could emerge from its current doldrums.
Planning is great, but there are some issues Snap will have to contend with here.
Gen Z isn’t everything: The memo outlines plans to onboard more users in their 30s and 40s to meet the platform’s growth objectives. But what impact could the strategy have on the Gen Z users that have made the app so popular?
ARpportunity? Next year, Snap hopes that augmented reality (AR)-based advertising will account for 10% of its overall ad income; the company is already working on the next iteration of its Spectacles AR glasses.
Why it matters: Advertisers—not to mention those new enterprise AR clients Snap is going after—like certainty. The company’s clear strategy will give buyers a degree of that. But they also like execution—and that’s something the company hasn’t been able to do reliably.
The big takeaway: Spiegel’s memo notes that prior to this year, fiscal stimulus and central bank monetary policy incentivized revenue growth at all costs. Now, the situation has changed significantly in a short period, with profits heavily prioritized.