When it comes to the key metric of average revenue per user (ARPU), Snap still has some way to go. Having just posted very disappointing Q3 results, the social media firm is still yet to prove it can sustain significant user growth and convert it into all-important profit. Like Facebook, Snap is very much reliant on ad revenue generated from its users and in Q3 2017, global ARPU was $1.17. For context, Facebook was pulling in $1.54 (32% more) nine months after its IPO and now boasts a global average of $5.07. With user growth slowing, Snap may need to rely on an equally impressive increase in ARPU if it is to survive.
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