It is now Snapchat’s turn to reveal its quarterly results for the period from June to September. If the social network records a nice increase in its revenues, its delay on the competition continues to increase.
Performance attributed to AI and paying subscribers
So, the ghost platform saw its turnover increase by 15% compared to the same period last year, reaching $1.37 billion. Its number of daily users is also increasing and now stands at 443 million, compared to the 441 million forecast by analysts.
“ I’m proud of the progress the team made this quarter, which saw strong community growth and deepened engagement while driving improved financial performance. Our investments in AI (artificial intelligence) and AR (augmented reality) power new creative experiences for our community and drive innovation across our advertising platform, supporting our long-term growth opportunity “, welcomed Evan Spiegel, CEO of Snapchat.
He notably cited the testing of a new video generation functionality, which allows content to be created from a simple text query. “ Our efforts helped the number of creators posting content increase by approximately 50% year-over-year in the third quarter », assures Spiegel.
The paid Snapchat+ subscription is also successful. Available at 4.49 euros monthly, it offers additional features to its members. Their numbers have doubled from last year, now reaching 12 million and generating $123 million in additional revenue.
More losses
Despite an encouraging result, all is not rosy for the social network. Although it has overhauled its advertising business in recent years, it continues to post significant losses. In the third quarter, they were $153 million. If it is still better than the 368 million recorded in 2023, it is still not enough.
Because the gap continues to widen with its main competitors. Snapchat’s user base is tiny compared to TikTok (1 billion) and Meta (3.3 billion). So, the company’s stock price fell 35% over the yearreflecting growing investor fears about its ability to truly compete with the two behemoths.
Another downside is that Snapchat’s forecasts for the current quarter are less encouraging. It expects an increase of 8 million users, compared to an additional 11 million during the third financial year. Its turnover should be between 1.51 billion and 1.56 billion dollars.
- In the third quarter, Snapchat saw its revenue increase by 15%.
- Evan Spiegel, its CEO, attributes this result to investments in AI and augmented reality.
- However, the performance gap between Snapchat and TikTok and Meta continues to widen drastically.
