But Facebook - which once offered $3bn to buy the business - has upped the ante by offering features similar to Snapchat on its platforms including Instagram and WhatsApp.
Snap Inc (NYSE:SNAP) shares could come under selling pressure on Thursday after the company delivered disappointing earnings number for the March quarter.
"We made good progress this quarter improving the performance and quality of our Snapchat application, especially on Android, which has helped result in increased net user adds and engagement", Snap chief strategist Imran Khan told CNBC.
Snap said its daily active users (DAUs) rose 36.1% to 166 million in the first quarter from a year earlier, marking a slowdown from the 47.7% rise for the fourth quarter and 62.8% jump for the third quarter that the company reported in its IPO filing. Snap revealed user growth has slowed considerably in its first quarter that ended March 31. Just a week earlier, Facebook posted double-digit revenue growth for the first quarter much as it has consistently since its initial public offering in 2012.
Snapchat has seen increased competition in the past 12 months, with Facebook and Instagram both adding "Stories" - a feature nearly identical to Snapchat's own of the same name.
Growth in Snapchat's user base slowed down previous year after Facebook's Instagram copied Snapchat's "stories" feature, which lets users post short video clips that disappear after 24 hours. Snap receives some revenue from branded or sponsored filters and lenses, but depends on advertising dollars for the bulk of its overall revenue.
"We believe that everyone is going to develop a camera strategy", Spiegel said.
Isaiah Thomas fined for inappropriate language toward a fan
But the Wizards - young, prone to overconfidence and always preferring the hard way - couldn't muster the appropriate intensity. The Celtics started the second quarter where they left off, as Jae Crowder's three-pointer from the corner put Boston up 41-23.
He also did not shy away from one query that allowed him to take a feisty jab at Facebook. It was the most valuable United States tech IPO since Facebook first floated its stock in 2012.
In its ad revenue forecast for the next few years, eMarketer predicted that Snapchat will continue to see faster revenue growth than any other digital company, although future growth rates are expected to be slower than they were in 2016. The company's expenses after going public, however, face it with a long-term challenge to become profitable again and have sparked worries among investors.
On the other side of the ledger is Snap cofounder and CEO Evan Spiegel.
In a press release, Snapchat stated the new features would serve to reduce frustration and increase creativity. The Snapchat app initially drew attention for letting people add fun filters and overlays to their mobile photos and videos, virtually turning human faces into puppies or crowning them with flowers.
Teens, though, don't necessarily want to use the same messaging and socializing tools that their parents and grandparents are using.
Facebook has introduced various clones of Snapchat stories and seems like it is taking a toll on both, Snapchat earnings and Snapchat users. This could be an app such as Houseparty, a group video chat app that's popular with teens, or Musical.ly, a video social network that lets people create and share short music videos.
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