Snapchat, the multimedia messaging app, is celebrating a big milestone as it proudly announces that its user base has now exceeded 400 million. Snapchat’s user surge comes as part of Snap’s third-quarter earnings report, showcasing Snapchat’s resilience and steady growth. With the addition of nine million new users in the last quarter, the app boasts a total of 406 million daily active users, marking a remarkable 12 percent increase from the previous year.
Snapchat’s Remarkable User Surge
Snap’s achievement is particularly noteworthy considering that just over a year ago, Snap made the difficult decision to lay off approximately 20 percent of its workforce in an attempt to streamline operations and combat a slowdown in advertising revenue. However, the company’s dedication to technology, coupled with the introduction of new product features, seems to have truly reversed its fortunes.
Snapchat’s foray into generative AI has been an unmitigated success. The company’s MyAI chatbot, introduced to all Snapchat users in April, has already engaged with over 200 million individuals, facilitating more than 20 billion message exchanges. Snap believes that its MyAI chatbot ranks among the most widely used AI chatbots globally.
Diverse Revenue Streams
Snapchat’s financials mirror its impressive user growth. The company reported $1.19 billion in revenue for the quarter, marking a 5 percent increase from the previous year. This performance has outperformed the expectations of Wall Street analysts, as reported by CNBC. Notably, Snap credits part of its revenue diversification to Snapchat+, a subscription service that provides exclusive and experimental features to users for $4 per month. Snapchat+ has now garnered a subscriber base of five million, underlining Snap’s ability to generate revenue beyond traditional advertising.