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On Snap’s first earnings call as a public company Wednesday, Wall Street had a particularly burning question for Snapchat founder Evan Spiegel: “Does Facebook scare you?” asked Richard Greenfield, an analyst at BTIG.
Following an earnings report that came in below analysts’ expectations on sales, profit and user growth — prompting Snap stock to plummet nearly 25% after-hours towards its IPO price of $17 — 26-year-old CEO Spiegel laughed at the question.
Greenfield had prefaced his query by noting that Facebook CEO Mark Zuckerberg had announced a new camera feature with augmented reality last month, positioning the social media company in direct competition with Snapchat, which describes itself as a camera company.
“At the end of the day, just because Yahoo has a search box, it doesn’t mean they’re Google,” Spiegel said.
Spiegel also suggested that Facebook was imitating Snap, and he expected other companies to do the same, interpreting it as a form of flattery. “If you want to be a creative company, you’ve got to get comfortable with and basically enjoy the fact that people are going to copy your products if you make great stuff,” he said. “Now I think with Snap, we believe that everyone’s going to develop a camera strategy.”
Still, for a company that touts cameras as a core part of its business, Snap’s single hardware product, Snapchat Spectacles, account for a tiny part of its business. Of Snap’s $150 million in revenue in the first quarter of 2017, only $8 million, or 5%, came from the picture-taking glasses, the company said on the earnings call. In the final quarter of 2016, when Snap began selling them, Spectacles made up $4.5 million of the company’s $166 million in revenue.
This story originally appeared on Fortune.com. Copyright 2017
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