Not only is the equation simple; it's successful. While Spiegel admitted that users will need to "take time" to get used to these changes, he believes that it will result in further growth.
Snap, based in Venice, Calif., may be benefiting from troubles at its much larger rival, Facebook.
Snap's average revenue per user for the period was $1.53, representing an increase of 46% year-over-year while its cost of revenue per user was $1.02 in the final quarter of the year, an increase of 5% compared to 12 months earlier.
Investors will also be pleased to learn that worldwide the revenue created by each user has risen to $1.53 (£1.10) per quarter, compared with 90 cents at the start of 2017.
"For the first time, revenue in Q4 from advertisers outside of Ad Age's Top 100 exceeded revenue from the Top 100 Advertisers", Imran Khan, Snap's chief strategy officer, said during the conference call. It came despite Snap's warning that its year-on-year revenue growth rate of 74 per cent in the fourth quarter would "moderate" in the first quarter, as brand advertisers pull back on their spending after the holidays.
Media coverage about Snap (NYSE:SNAP) has been trending somewhat negative on Wednesday, Accern Sentiment reports. That change helped boost the number of ads featured in its app by 4X the amount from the same time past year, with 90 percent of the ads now coming from programmatic systems, according to the company.
SAN FRANCISCO-Don't count Snap Inc. out just yet.
Moving on, management said that Android user retention was up 20% on a sequential basis.
"The engine that drove the growth in the fourth quarter and will continue to drive our growth really is the auction platform".
To catalyze its future ad revenue growth, Snap plans to automate even more of its ads. The shares were sold at an average price of $13.98, for a total value of $349,500.00. But that is changing. Snap has brought in 2,400 people over the last two years, and this year, the focus will be on increasing productivity and "continuing to build an inclusive and creative culture".
"We ended 2017 confident that we can grow our Snapchat community and monetize our products more efficiently than ever before", he said.
"Over 90pc of Snap Ads were bought programmatically during Q4, which means that the auction transition for Snap Ads is largely behind us".
The hope is that Snap will grow into its expectations.
Tim Peterson, Third Door Media's Social Media Reporter, has been covering the digital marketing industry since 2011. Facebook rose by 14%.
In the run-up to these results, investors had been concerned about the potential impact from a radical redesign of Snapchat, which split messaging with friends into a section separate from professional content from news publishers and video producers.