Snap saw its daily active users fall by 3 million to 474 million in the fourth quarter as the social media platform said it substantially reduced marketing investments “to focus on more profitable growth.”
Net income surged to $45.2 million from the $9.1 million the year before. The shares, which can be volatile after earnings, rose in after-market trading on the numbers.
“Our Q4 results began to reflect the impact of our strategic pivot toward profitable growth, translating into revenue diversification and meaningful margin expansion,” said CEO Evan Spiegel. “This progress reflects our commitment to building a more financially efficient and profitable business while continuing to invest in the future of augmented reality and the consumer launch of Specs.”
Snap said DAUs were also hit by Australia’s new social media minimum age act, that requires age verification, which resulted about 400,000 accounts being removed.
Revenue rose 10% to $1.72 billion. Monthly active users (or MAUs) stood at 946 million in Q4, up by 51 million.
Advertising revenue reached $1.48 billion in Q4, up 5%. Subscription revenue jumped 62% year-over-year to $232 million. Subscribers to services including Snapchat+ and Memories Storage Plans grew 71% year-over-year to reach 24 million in Q4.
In AR, more than 700M Snapchatters have engaged with generative AI Lenses more than 17 billion times. The Imagine Lens been engaged with nearly two billion times since launching in September. More than 450,000 AR creators from nearly every country have built over 5M Lenses.
The company recently launched Specs Inc as a distinct subsidiary within Snap. After five generations of development, it plans to launch Specs publicly in 2026.
English (US) ·