Decoding Snap’s Hiring Trends: Engineering and Sales
Engineering and sales claim 90% of hires
A look at Snap’s (SNAP) hiring practices reveals the company has been busy adding personnel in its engineering and sales departments. In 2Q17, Snap’s headcount increased to 2,600 from 2,360 in 2Q16. The company noted that 90% of the positions it filled in 2Q17 were in engineering and sales, echoing its hiring trend in 1Q17.
As a result of the increased hiring for its engineering and sales departments, Snap’s operating expenses rose in 2Q17. The company incurred $228.7 million in operating expenses in the quarter, an increase of 17%.
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Focus on innovation behind engineering hiring
The chart above shows Snap’s operating expenses, excluding stock-based compensation expenses, for the last five quarters. Snap’s addition of engineering jobs can be explained by its intense focus on innovation to drive growth.
Given the fierce competition Snap faces from Facebook (FB), Twitter (TWTR), Alphabet’s (GOOGL) Google, and Verizon’s (VZ) Oath in the online advertising industry, the company is betting on innovation to help it stand out.
Snap is investing in new products and tools designed to create more value for advertisers. These offerings are also designed to encourage higher user engagement on its Snapchat platform, which has more than 173 million daily users.
Sales force hiring
As Snap scales its monetization, it has been necessary to add more talent in its sales department. However, as Snap rolls out automated ad buying tools for its advertisers, its sales hiring is expected to moderate.