Snap Inc is a social media company founded in September 2011. It created a popular Snapchat mobile app, social network and camera software. Snapchat was created by Bobby Murphy, Reggie Brown and Evan Spiegel and is available on both Android and iOS.

 

Snapchat’s popularity has skyrocketed since its inception, and the company can boast more than 180 million active users who use the app roughly 18 times a day. 71% of the user base is below the age of 34, making it popular with millennials. The app is a powerful marketing tool for brands aiming to target this younger audience. Outside of Snapchat, the company also has three other products, including Bitmoji, Spectacles and Zenly, although Snapchat is the most popular among them.

 

Snapchat offers timed content, supporting image and video whilst also incorporating additional features like augmented reality and comprehensive filters. The app is primarily focused on peer-to-peer messaging, but also allows the posting of 24-hour stories which are broadcast to all contacts. As well as its mobile-based apps and technology, Snap also created wearable smart glasses designed to offer superior filming opportunities.

 

One of the key Snapchat features is that all content shared by the users, including video, audio and stylized stickers, would disappear from the Snapchat app within 24 hours. This emphasizes the temporary nature of social media content and creates a “Fear of Missing Out” for subscribers to each Snapchat channel. This makes is an attractive tool for social media influencers and businesses who wish to keep their audience constantly engaged with new content.

 

Snap offices are located in Santa Monica, California, but the company also has operations in London and Hong Kong. It has also acquired Cimagine Media, an Israeli augmented reality company for around £30-40m. Snap Inc also has partnership with Turner Broadcasting System to allow the use of its intellectual property on the Snapchat app.

 

Snap held its IPO in March 2017, after initially filing the documents in November 2016, reaching $30 billion in market capitalisation within the first day of trading on the New York Stock Exchange. Snapchat shares have been on a rollercoaster ride since late 2018, after Snap reported a $2.2bn quarterly loss in May 2017. Snapchat shares fell over 20%, erasing most of the post-IPO gains. Following the IPO, the two key Snapchat founders, Evan Spiegel and Bobby Murphy, owned around 45% of total share capital and over 70% of voting rights due to holding a special share class with preferred voting rights.