Blog: Daily Active users

It does not seem long ago that slowed growth was enough to imbue discussions around then social media enfant terrible Snapchat with rumours of decline. However, this week’s Q2 announcement was a defining one for the LA-based social media company.

The Daily Active User (DAU) is a common engagement metric, often used in gauging companies’ performance and value. In gaming, DAUs vary markedly across mobile, PC, console and social. The differences are seen in penetration rates, demographics, engagement and spending trends.

Following the release of its first earnings call since its IPO in March, Snapchat creator Snap Inc has seen its stock price drop 28% to its lowest price since going public. The development increasingly reflects investor uncertainty as to whether the company will be able to continue following a period of intense competition from Facebook and a consequent slowdown in growth.

Discussions abound in tech circles over where Facebook will go next. Much in the same way as Apple’s definitive strategy in the past two decades can be interpreted through their services embellishing the company’s hardware products, (though a slowdown in iPhone sales could potentially alter this approach) Facebook’s next chapter should be seen through the lens of ‘diversify fast’.