Snap is creating 'startup squads' to help it move faster
Snap Inc.—the company behind Snapchat—is making big changes after a tough run with slow ad growth and fewer users in North America.
CEO Evan Spiegel just announced new "startup squads," which are small teams meant to help Snap move faster and compete with bigger tech rivals.
This shake-up comes as ad revenue only grew 4% last quarter, and daily active users in North America slipped by 2% to 98 million.
Snapchat+ subscriptions and AR glasses are Snap's focus areas
Even with these challenges, Snapchat+ subscriptions are bringing in over $700 million a year from 15 million paying users—showing that direct revenue is becoming a bright spot for Snap.
The company's also betting big on AR glasses (Specs), which Spiegel describes as "a once-in-a-generation transformation toward human-centered computing."
Despite its market value dropping from $116 billion at its peak in 2021 to around $12 billion now, Snap hopes these moves will help it bounce back and grow again.