Evaluating the Impact of the Covid-19 Pandemic on Snapchat’s Business Outcomes

Joško Lozić; Katerina Fotova Čiković; Damira Keček

doi:10.31181/msa21202514

Authors

Joško Lozić University North, Koprivnica, Croatia Author https://orcid.org/0000-0003-2742-0171
Katerina Fotova Čiković University North, Koprivnica, Croatia Author https://orcid.org/0000-0003-0138-1362
Damira Keček University North, Koprivnica, Croatia Author https://orcid.org/0000-0003-1555-3655

DOI:

https://doi.org/10.31181/msa21202514

Keywords:

COVID-19, Digitization, Digital transformation, Platform economy, Snapchat

Abstract

This paper explores the impact of the COVID-19 pandemic on the operational and financial performance of the Snapchat platform. The research aims to assess the resilience of the Snapchat platform during the COVID-19 crisis and to understand how platform-based business models respond differently to global disruptions than traditional businesses. The analysis is based on key financial indicators derived from the profit and loss statement, alongside trends in user growth. Methodologically, the study employs financial analysis and statistical regression models to evaluate selected business metrics. The findings suggest that the global pandemic did not significantly disrupt Snapchat’s operations. On the contrary, both gross profit and user numbers increased during the pandemic, with the platform recording its highest gross profit in the final year of the analyzed seven-year period, following the pandemic’s end. While the pandemic had limited impact on overall business performance, a notable post-pandemic trend was observed: revenue growth fell below the average for the period studied. Despite consistently posting negative net results, investor interest in the platform remained stable. These findings underscore a key distinction between platform-based business models and traditional “pipeline” models, highlighting the resilience and unique dynamics of digital platform economies.

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References

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