"Snap is on a mission to diversify its revenue sources-moving from a business model in which it largely chases ad revenue to one where it can also make money through subscriptions and, eventually, hardware. The company's latest quarterly earnings report shows that, so far, the firm is having moderate success with that strategy. In Q4, Snap's revenue was $1.7 billion, which is up 10% year-over-year. Its average revenue per user was also up, slightly (to $3.62 from $3.44)."
"The company has also continued to generate a significant amount of revenue from Snap+, the paid subscription service that the platform launched back in 2022. The service's subscribers grew 71% year-over-year, reaching 24 million. While those numbers might seem to suggest a company whose trajectory is headed in the right direction, the earnings report also shows the platform had slightly fewer daily active users last quarter-dropping from 477 million to 474 million."
Snap shifted toward diversifying revenue beyond advertising into subscriptions and hardware. Q4 revenue reached $1.7 billion, up 10% year-over-year, and average revenue per user rose slightly to $3.62. Net income increased to $45 million from $9 million the prior year. Snap+ subscriptions grew 71% year-over-year to 24 million, providing meaningful paid revenue. Daily active users dipped from 477 million to 474 million, with declines in North America and Europe and modest growth elsewhere. The company expects Q1 revenue below analyst estimates amid advertising competition and is planning Memories storage monetization and a Specs hardware relaunch.
Read at TechCrunch
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