Snapchat sees 9% user growth and 14% revenue boost in Q4 2024

Snap Inc., the parent company of Snapchat, has released its fourth-quarter earnings report for 2024, showcasing notable growth in both user engagement and revenue. The platform's daily active users (DAUs) reached 453 million, marking a 9% increase from the previous year and slightly surpassing market projections. 

Financially, Snap reported a revenue of $1.56 billion for the quarter, a 14% rise compared to the same period last year. This figure marginally exceeded analysts' expectations. The company's adjusted earnings per share stood at 1 cent, outperforming the anticipated 4-cent loss. 

In terms of user engagement, the total time spent watching content on Snapchat increased by 25% year-over-year. Additionally, Spotlight, Snapchat's short-form video feature, attracted over 500 million monthly active users on average during the quarter. 

Looking ahead, Snap forecasts first-quarter revenue between $1.33 billion and $1.36 billion, aligning with market expectations. The company also anticipates adjusted EBITDA in the range of $40 million to $75 million for the upcoming quarter. 

As per Snap, “Direct Response ad revenue growth was up 14% year-over-year in Q4 and was the largest driver of our ad revenue growth in 2024. Strong demand for Pixel Purchase and App Purchase Optimizations led to revenue from app-based purchase optimizations growing more than 70% YoY in Q4.”