Snap Inc. (NYSE: SNAP) might be poised for a turnaround, despite most of Wall Street betting against the camera app. In fact, a recent memo leaked from the company with CEO Evan Spiegel calling for break-even earnings in the fourth quarter and potential profitability in the future.
The company also is working on new designs of its Discover section in the Snapchat app, which shows content from professional media companies and celebrities.
Despite saying what Snap plans to do, the memo does address the many senior executives who have either left or announced their intention to leave in the past 18 months.
Spiegel acknowledged the shortcoming of the recent app redesign. He noted that the firm rushed the redesign “solving one problem but creating many others.”
In terms of the full year profitability, Spiegel said in the memo:
Our 2019 stretch output goal will be an acceleration in revenue growth and full year free cash flow and profitability. With profitability comes increased autonomy and freedom to operate our business in the long term best interest of our community without the pressure of needing to raise additional capital.
The company noted three primary ways that it plans to grow its revenue in the future:
- Increasing DAU and engagement
- Improving measurement and optimization
- Increasing the number of active advertisers
Shares of Snap were last seen at $7.83 on Friday, with a consensus analyst price target of $11.24 and a 52-week trading range of $7.56 to $21.22.