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Snapchat has crossed 400 million daily active users (DAUs) globally. The social media app had 406 million DAUs at the end of September 2023, the company announced in its earnings report for the third quarter of the year. It added nine million new users during the three months and 43 million since September 2022. Its paid subscription service, called Snapchat+, also reached five million users last month.
Snapchat posts positive revenue growth as users increase globally
Snapchat has been operating at a loss lately. While its losses narrowed by around 11 percent YoY in the second quarter of the year, the company couldn’t keep up the pace in the third quarter. The company reported a two percent increase in net loss this past quarter. Its net loss for the period was $368 million, compared to $360 million in the same period last year.
However, on the bright side, Snapchat saw its revenue grow in Q3 2023. The firm posted a total revenue of $1,189 million during the period. That marks a five percent YoY growth from $1,128 million in the previous year. Its revenue declined almost four percent YoY in Q2 2023, so it appears to be on track to return to profitability. CEO Evan Spiegel says Snapchat’s “reprioritized cost structure demonstrated the leverage in our business model.”
“We are focused on improving our advertising platform to drive higher return on investment for our advertising partners, and we have evolved our go-to-market efforts to better serve our partners and drive customer success.,” Spiegel added. Snapchat has also implemented several cost-cutting measures over the past year or so. It laid off 20 percent of its global workforce last year to reduce operational costs.
Snapchat+, the company’s $4-a-month subscription service launched last year, has been a key growth driver of its non-advertising sources of revenue. The service unlocks additional features such as custom app icons, story rewatch, exclusive badges, priority replies, custom notification sounds, and more. Subscribers also get early access to new experimental features on Snapchat.
Snapchat’s COO is retiring
In its latest earnings report, Snapchat revealed that its Chief Operating Officer (COO), Jerry Hunter, is retiring. Hunter joined the company seven years ago and played a key part in building the company’s “engineering and business structures.” His duties and responsibilities will be gradually transitioned starting this month, with the transition completed by July 1, 2024.
“I am deeply grateful to Jerry for the meaningful contributions he has made over his many years at Snap,” said Evan Spiegel. “His work to improve our advertising platform, serve our community, and build a strong team has helped lay the foundation for our future growth.”
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