But there are more challenges ahead. Chief financial officer Drew Vollero said on a conference call that the company would continue at a slower pace of hiring in the third quarter, noting that the third quarter of last year saw revenue boosts from tentpole events like the Summer Olympics and election. Plus, Vollero said, new products like Snap Maps lure users into spending more time on the platform, but also increase the cost for Snapchat.

As Snap has struggled to buoy a falling share price over the quarter, competitors have caught up. Multiple agencies have told CNBC that interest in Snapchat among advertisers is flat to declining as many influencers and creative agencies look to Facebook’s Instagram. Google is also in talks to create a quick-loading media platform similar to Snapchat’s Discover, according to The Wall Street Journal. And with most of its user base on iOS (at least as of earlier this year), Snap is also beholden to Apple, which has its own augmented reality ambitions.

While Snap may be small, it boasts high engagement among the coveted millennial age group. Martin Sorrell, head of advertising giant WPP, told CNBC this month that his company plans to double its spending on Snap this year.

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