news.ycombinator.com
Is Snap Inc Back?https://news.ycombinator.com/item?id=49164568Summary -Snap Inc.’s business model is changing. Wall Street has tagged the company as an advertising company, which has been the dominant model for most of the companies’ short time in the public market (9 years). But over the last two years, it has seen growth in one segment that is unrelated to advertising, and has a marginal cost of selling near zero.Snap+ is the subscription business for Snapchat’s app. I believe that this is the future; most tech companies’ dominant revenue today comes from a second business like AWS or Windows.Snap Current Business Model-Snap Inc currently has advertising as its dominant revenue source. And it has a unique offering through its AR filters, as a way to display ads, along with real estate in the apps, Maps, and contacts, and through its feed of videos. Snap had 5.9 billion in revenue in FY2025. Ads were 87% of revenue.I view this business as the legacy business, and I expect revenue to still come from it at a high rate, but the higher margin revenuAug 4, 2026 5:15 AM
