Snap Inc.

Snapchat is a cautionary tale against leaving unicorns for dead

A unicorn carries the Snapchat symbol by its horns
Illustration: Sarah Grillo/Axios

Before Lyft or Uber or WeWork, there was Snapchat. A red-hot, multi-billion dollar startup that melted upon contact with the public markets.

Why it matters: It's a cautionary tale for those who are quick to leave the 2019 cohort for dead. Snap shared many of the unfavorable traits of those that would follow. Giant losses, unclear path to profitability, and a CEO whose hubris and poor communication skills had damaged both morale and product development.

Snapchat adds 7 million daily active users

Illustration: Axios Visuals

Snap Inc.'s stock whipsawed Tuesday in after-hours trading after the company reported positive earnings but offered weaker-than-expected revenue growth estimates for the next quarter.

The big picture: The company beat analyst expectations by adding 7 million daily active users, including 5 million users overseas. Snapchat struggled to add users internationally last year prior to its Android redesign.