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How Snap Is Working to Grow Its International Business

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Nearly 31% of revenue generated outside North America

Although Snap (SNAP) is mostly concentrated in North America, the company’s international push is starting to bear fruit. In the third quarter of 2018, the most recently reported period, Snap generated 30.5% of its revenue outside North America, a huge leap from 19.7% a year earlier.

Still, Snap has a long way to go to catch up with rivals Facebook (FB) and Alphabet (GOOGL) in terms of geographical diversification of revenue. In the third quarter of 2018, Facebook generated 51% of its revenue outside the United States and Canada. Alphabet generated 54% of its revenue outside the United States in the third quarter. Twitter (TWTR) generated 44% of its revenues outside the United States in the third quarter. Amazon (AMZN) generated 31% of its retail revenue outside North America in the third quarter.

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Snap yet to exploit every opportunity

Given the steps that its more geographically diversified peers like Facebook and Google have taken, Snap seems to have more room to grow its international business. For example, Facebook, Google, and Twitter have created lightweight versions of the popular apps that are optimized for developing countries, allowing them to onboard new users in the developing world quickly. Snap has yet to create a lighter version of its Snapchat app that is optimized to run better on slower networks or cheap smartphones. Facebook, for instance, has created Facebook Lite, Instagram Lite, and WhatsApp Lite apps that are able to run smoothly on slower networks and are also less draining on the battery.

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