Snapchat sees boost in ad revenue performance; surpasses 850 mn users

Snap Inc. has released the Quarter Two (Q2) Snapchat earnings report for the year 2024, showcasing its increase in daily active users, new content offered to build the community, and efforts to drive sustainable profits and more.

Revenue and Daily Usage

Snapchat added 10 million more daily active users in the period, reaching 432 million DAU. The platform also reached a new monthly user milestone of 850 million. It generated $1.24 billion for the quarter, with significant growth in the "Rest of the World" category, surpassing Europe in revenue intake. While the platform continues to see higher earnings per user in the EU, the increasing user base in other markets boosts its overall earnings potential.

Advertising

Snapchat is investing in AI tools and AR effects to drive more engagement and improve ad performance. Its infrastructure costs continue to rise, along with increased spending on advertising and promotion, particularly to attract U.S. advertisers. Despite these rising costs, the platform has seen success with its Snapchat+ subscription offering, now at 11 million subscribers, up from 9 million in April.

The ongoing momentum with its direct response products and growth in small and medium-sized businesses (SMB) contributed to total active advertisers more than doubling year-over-year in Q2. Additionally, its improvements to Conversions API (CAPI), improved collaboration with advertisers, and growth in partner integrations resulted in CAPI integrations growing over 300% year-over-year.

The platform also announced AR Extensions, which enable advertisers to integrate AR Lenses and Filters directly into all Snapchat ad formats. Moreover, brands can leverage Generative AI technology such as our ML Face Effects to create custom-sponsored AR Lenses. To help entertainment advertisers understand the platform’s impact on theatrical releases, it also partnered with Samba TV, which found that exposure to campaigns on Snapchat delivered a 91% lift in ticket sales.

New developments in Content and Augmented Reality

The platform reported "all-time highs in the number of daily active users sending Snaps in every region" and a 25% year-over-year growth in global time spent watching content in the app. The platform's Gen AI Lens "Scribble World" was viewed over a billion times in the quarter, contributing to its engagement metrics.

It also launched Lens Studio 5.0, which features the new Gen AI Suite that makes Lens Studio easier to use by enabling creators to generate a variety of Lensready assets with a prompt and no coding required.