Snapchat Hits 453M Daily Active Users As Advertising Revenue Grows

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In the final quarter of 2024, Snapchat reported a total of 453 million daily active users, marking an increase of 39 million (or 9%) compared to the same period the previous year.

Last year’s earnings for our social media business totalled $1.55 billion, marking an increase from $1.36 billion in the previous year. Approximately 90% of this income came from advertising, which saw a 10% growth compared to the same time last year. The net income for this period was $9 million, a significant improvement from the net loss of $248 million experienced in the preceding year.

Snap credited its profit surge to multiple causes, such as a significant boost in Adjusted EBITDA by $117 million, a decrease of $78 million in stock-based compensation and related expenses, positive net investment effects worth $27 million, and an additional $22 million improvement due to non-recurring items stemming from cost savings during business restructuring in the previous year.

Snap explained that its Snap Star initiative, enabling influencers to earn income through their content on the app, resulted in over a 40% rise year-on-year in creators sharing content on Snapchat during Q4. Notably, the daily active users in North America have stayed around 100 million for quite some time now, but growth has been observed in regions outside of North America and Europe.

As a dedicated Snapchat user in 2024, I was thrilled to witness the remarkable surge in Other Revenue category, primarily fueled by our beloved Snapchat+ subscriptions. This category experienced a staggering 131% year-on-year growth! To put it into perspective, we ended the year with an annualized revenue run rate surpassing a whopping half a billion dollars – $500 million to be exact. What a testament to the growing popularity of Snapchat+ and the platform’s continued success!

By 2025, the company announced its intention to roll out an improved version of Snapchat, emphasizing ease-of-use and accessibility. In 2024, Snap introduced its fifth generation of AR glasses, Spectacles. Now, they aim to “upgrade” their tools to make it simpler for users to create AR content and expand the variety of everyday life experiences that incorporate augmented reality using Spectacles.

2024 marked substantial advancements for us in areas crucial to our mission: expanding our user base, increasing engagement, boosting top-line income, and diversifying our financial streams. Meanwhile, we’ve been steadily working towards our ultimate goal of developing augmented reality technology, shared Evan Spiegel, CEO. In the last quarter alone, our number of active advertisers more than doubled, thanks to enhancements in our advertising platform that led to better advertiser outcomes and a 14% increase in year-over-year revenue.

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In 2024, we made significant strides on our key objectives: expanding our community, boosting engagement, increasing sales, and diversifying income streams, all while moving forward with our long-term vision for augmented reality. As CEO, Evan Spiegel reported, our number of active advertisers more than doubled in the last quarter due to improvements in our ad platform that led to better performance for advertisers and a 14% year-over-year revenue growth.

More to come.

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2025-02-05 00:54