Snap Inc. has posted strong third-quarter results, growing both revenue and user numbers as the company doubles down on artificial intelligence, augmented reality, and advertiser performance tools.
The tech company behind Snapchat reported revenue of $1.51 billion, up 10 per cent year-on-year, while daily active users climbed to 477 million, an 8 per cent increase. Monthly active users also grew 7 per cent to 943 million.
“Our focus on performance, creativity, and simplicity is helping advertisers achieve stronger results while giving our community more ways to communicate,” said Snap CEO Evan Spiegel. “I’m proud of the team’s progress and confident that our discipline and innovation will support durable, long-term growth.”
Direct response advertising revenue was up 8 per cent year-on-year, driven by what Snap described as strong demand for its Pixel Purchase and App Purchase tools. Ads linked to purchases grew more than 30 per cent, showing stronger attribution accuracy and better campaign performance.
Snap said Sponsored Snaps are proving particularly effective, delivering up to 22 per cent more conversions and 19 per cent lower costs per action when used as part of broader campaigns.
The company’s other revenue, largely driven by its Snapchat+ subscription offering, rose 54 per cent to $190 million, highlighting growing consumer appetite for premium features.
Snap continued to expand its use of AI, announcing new tools to help both creators and developers. The company unveiled the Imagine Lens, which allows users to generate or edit Snaps through text prompts, and rolled out the Lens Studio AI Assistant, which helps creators design and code Lenses.
Snap also said more than 500 million users have interacted with its Generative AI Lenses over six billion times, while 350 million Snapchatters engage with AR features every day.
To monetise this creator ecosystem, Snap introduced Lens+ Partner Payouts, a program allowing developers to earn directly from subscribers using GenAI-powered Lenses.
Snap’s board also authorised a $500 million share repurchase program for its Class A stock, funded from its $3 billion in cash and marketable securities.
Snap’s latest quarter signals a company regaining momentum. Its mix of AI-powered tools, creator monetisation models, and expanding AR ecosystem shows how the platform is evolving into a broader technology player.
