Facebook Already Knew That Snapchat Was Flailing -- Even Before Snap's IPO

User metrics are incredibly important for social media companies, since advertisers follow eyeballs. As such, slowing user growth was easily the first red flag that investors noticed when Snap (NYSE: SNAP) filed its S-1 Registration Statement with the SEC in February of this year ahead of its March IPO. As it turns out, larger rival Facebook (NASDAQ: FB) already knew that user growth on Snapchat was quickly decelerating.

The Wall Street Journal reports that Facebook had an inside track due to its acquisition of Onavo a few years back, a small mobile-analytics company that reportedly fetched $100 million to $200 million. Onavo had two main offerings: technology that helped optimize performance and battery life, as well as analytics that could help developers understand the marketplace. Facebook initially said the primary purpose for the acquisition was Onavo's data compression technology, which could help with its efforts to bring internet connectivity to emerging markets.

Data source: SEC filings. Chart by author.

Source: Fool.com