Snap Inc. has a deal to pay Amazon.com Inc. at least $1 billion for internet services over the next five years, in addition to the $2 billion cloud contract it already has with Google.
“Fewer Snaps and Chats sent means fewer notifications inviting friends back into the application and therefore lower and more sporadic daily use,” Snap said in the filing.
Snap is emerging as a major user of public cloud services, and a high-profile example of companies using more than one cloud provider. Snap has separately agreed to spend at least $2 billion with Google Cloud over the next five years, as well. That contract, also signed in just the past couple weeks, was disclosed as part of Snap’s original IPO filing last week.
Also included in the updated filing was more information about how Snap sees the broader competitive landscape around the world. It noted that users outside of North America and Europe tend to consume Snap’s content more than they create it – something the company attributed to a variety of factors, including the lack of high-speed cellular access in some regions. This requires users to wait until they’re in an area that has high-speed Wi-Fi, Snap said, which translates into less frequent daily usage as you’d see in the developed market.
Snapchat has more than 100 million active users, about 60 percent of whom are aged 13 to 24, making it an attractive way for advertisers to reach millennials. (Image- Snap Inc.)