A newly re-designed Snapchat application (SNAP), with an increased focus on Discover, has given NASCAR an 80% boost in the number of viewers who watch its stories. Discover, the platform that allows verified media companies (plus influencers, brands and celebrities) to run their own channels and to split the ad revenue generated, was given its own section following the SNAP update. On last week’s earnings call, the company announced that +/- 25% of all users were using the re-designed app; insinuating viewership numbers should continue to increase. The re-design will be fully deployed by March 31st.
Howie Long-Short: While the re-design is being panned by younger users, it appears to be serving its purpose; to give publishers, brands, influencers (i.e. the people who monetize the platform) the ability to increase eyeballs (and ultimately revenue). SNAP reported Q4 ‘17 revenue increased 72% YOY (to $286 million), while revenue per user grew 46% YOY; the image messaging and multi-media mobile application also added 8.9 million daily users (to 187 million) during the most recent quarter. It wasn’t all positive news though, GAAP (generally accepted accounting principles) net losses more than doubled (as costs soared, ex: R&D +260%) during the quarter. It should be noted that with a market cap of +/-$24 billion, the company is trading at an absurd +/-30x ’17 earnings.
Fan Marino: The Hashtag 500 will be returning for the 60th running of the Daytona 500, giving fans the chance to compete on social media for memorabilia from Sunday’s race. To play, tune in to Fox at 2:30p EST and follow @NASCAR on Twitter (TWTR); they’ll be releasing custom hashtags (every 20 laps) that give fans the chance to enter random drawings for race gear (see rules, here). A driver’s fire suit, helmet, steering wheel and a set of Goodyear Tires are among the prizes to be won; the grand prize is a trip for 2 to the ’18 Monster Energy NASCAR Cup Series Championship in Miami. The ’16 Hashtag 500 set several NASCAR social media records, including tweets per minute (13,000).
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