Second, Snap should scale.
Snap’s growth is driven by new features that keep users paying attention — and are cheap to develop. Snap’s gross margins turned positive last year — it’s big enough now to cover the direct costs of providing its service, which are growing much slower than revenue. Boosting revenue fast while spending little is how this works.
Best of all, Snap’s in an easy-to-grasp market."
Snap IPO: Why it may be the next Facebook - MarketWatch
http://www.marketwatch.com/story/even-an-old-dude-knows-that-snap-isnt-another-twitter-2017-02-27
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