Snap Inc. has delivered strong financial results for the fourth quarter and full year of 2024, showcasing its continued growth across key metrics. The company reported a 14% year-over-year increase in Q4 revenue, reaching around $1.56 billion, driven by an expanded advertiser base and improved ad platform performance.
CEO Evan Spiegel attributed the company’s success to its progress in growing its community, deepening user engagement, and diversifying revenue streams.
“In 2024, we made significant progress on our core priorities of growing our community and improving depth of engagement, driving top-line revenue growth and diversifying our revenue sources, while building toward our long-term vision for augmented reality,” said Evan Spiegel, CEO. “Active advertisers more than doubled in Q4, with the improvements we have made to our advertising platform driving improved advertiser performance and helping to grow revenue 14% year-over-year.”
Daily Active Users (DAUs) rose to 453 million, reflecting a 9% increase compared to the prior year. In a significant turnaround, Snap posted a net income of $9 million for the quarter, a notable improvement from the $248 million net loss in Q4 2023. Adjusted EBITDA surged year-over-year to $276 million, while free cash flow rose to $182 million.
User engagement continued to strengthen in Q4, with over one billion Snaps shared publicly each month and participation in the Snap Star program growing by more than 40% year-over-year. New features such as Bitmoji stickers and enhanced Family Center tools resonated with users, encouraging more frequent interactions.
Spotlight, Snapchat’s video feature, also saw record activity bolstered by Snap’s new monetisation tools for creators. The unified Monetisation Program enabled eligible creators to generate revenue from Spotlight videos, adding to the success of the Stories Revenue Share Program.
Advertising Boom
Snap’s advertising business achieved significant growth, with active advertisers more than doubling year-over-year in Q4. Small- and medium-sized businesses played a critical role in this expansion, benefiting from Snap’s improved direct-response products.
Sponsored Snaps and Promoted Places helped brands increase their reach, delivering a 30% boost in audience engagement in the U.S. Meanwhile, subscription revenue from Snapchat+ grew 131% year-over-year, with new features such as Footsteps and custom app themes enhancing the premium user experience. Branded Dreams AI Lenses, launched in partnership with Uber Eats and Tinder, delivered higher engagement compared to standard Lenses, showcasing Snap’s ability to innovate in advertising formats.
Snap’s leadership in augmented reality (AR) continued to drive user engagement and developer innovation. Over 400 million Snapchatters interacted with Gen AI Lenses more than 4 billion times during Q4. The company also launched its first Pre-Generated AI Lens, significantly reducing GPU utilisation and enabling more efficient Lens creation.
Developer tools such as the Image Spatialisation API and Spectacles Sync Kit further empowered Snap’s AR community, while Lens Studio surpassed one million downloads. Spectacles, Snap’s AR-enabled hardware, expanded to six new countries in Europe, alongside the introduction of educational pricing to make the technology more accessible to students and teachers.
Looking ahead to 2025, Snap appears well-positioned to build on this momentum. By advancing its advertising platform, expanding its AR ecosystem, and fostering deeper connections among users and creators, Snap is poised to remain a leader in the space.
