Since its IPO in 2017, Snap (NYSE: SNAP) has mostly disappointed investors with its user growth. While it has posted strong user growth results in recent quarters, it had to reset expectations early in its life as a publicly traded company, including a dismal 2018, which saw it lose 1 million daily active users after a botched Snapchat redesign.
User growth has consistently accelerated from its nadir in 2018, reaching 20% in the first quarter. While investors have cheered management's ability to turn its user growth around, the real growth story at Snap remains its potential to monetize users.
Snapchat's never going to be as big as Facebook (NASDAQ: FB), but the amount of revenue it makes per user has a lot of room to climb.
Source Fool.com