Snap is pushing to expand its business beyond advertising as it moves into subscriptions and hardware. The company’s latest earnings report shows moderate success with this strategy, even as daily user numbers dipped slightly.
In Q4, Snap reported revenue of $1.7 billion, up 10% year-over-year. Average revenue per user also rose to $3.62 from $3.44. Net income increased to $45 million, up from $9 million in the same period last year. Snap+ subscriptions, the platform’s paid service launched in 2022, saw strong growth, with subscribers increasing 71% year-over-year to reach 24 million.
Despite these gains, Snap’s daily active users fell slightly to 474 million from 477 million, primarily due to declines in North America and Europe. Users in other parts of the world saw slight growth. The company also warned that Q1 revenue is expected to fall below analysts’ estimates as competition from Facebook, Instagram and TikTok continues to impact ad earnings.
CEO Evan Spiegel highlighted new revenue efforts, including charging for Memories storage and plans to launch augmented reality glasses, called Specs, later this year. Snap created a dedicated subsidiary, Specs Inc., to focus on the hardware. Spiegel said, “Our long-term vision for augmented reality extends beyond the smartphone to a future when computing is more natural, contextual and seamlessly integrated into the real world.” He added, “We’re so close to launch that the key here is really just, you know, nailing the launch and making sure that we deliver an extraordinary product. And then, you know, I think we have a lot of flexibility to think about how we want to capitalize on it moving forward.”
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
