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Snapchat Q1 revenue reports an 85% YOY increase in small & medium-sized advertisers

The platform's Q1 report for 2024 showcases its annual revenue along with the application's daily usage, new content to build the platform, along with its revenue diversification initiatives.

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Snapchat Q1 revenue 2024

Snapchat Inc. has announced its financial results for the quarter ending March 31, 2024, showcasing its revenue along with the application's daily usage, new content to build community, along with its revenue diversification initiatives.

Here's a summary along with the key highlights of Q1 of 2024: 

Revenue and Daily Usage: 

  • Revenue amounted to $1.195 billion, marking a 21% year-over-year increase from $989 million in the previous year.
  • The net loss stood at $305 million, an improvement from the $329 million loss reported last year.
  • Adjusted EBITDA reached $46 million, up from just $1 million in the prior year.
  • Operating cash flow decreased to $88 million from $151 million the previous year, and free cash flow dropped to $38 million from $103 million. 
Community Engagement Growth:
  • Daily Active Users (DAUs) reached 422 million in Q1 2024, a 10% increase from the previous year.
  • Total time spent watching Spotlight content rose by more than 125% year-over-year.
  • The Snap Star program saw significant engagement growth in North America, with over 1,500 new Snap Stars joining in Q1.
  • New creative tools were introduced, including longer video posts, Creative Templates, and AI-powered AR Lens creation.
Revenue Diversification Initiatives:
  • Snapchat+ subscribers more than tripled to over 9 million in Q1.
  • The number of small and medium-sized advertisers on Snapchat increased by 85% year-over-year.
  • Sponsored AR Filters launched, allowing advertisers to overlay branded AR content on user Snaps.
  • New and improved Conversions API (CAPI) released to all advertisers, with integration partnerships and a 300% year-over-year increase in CAPI adoption.
  • New brand safety solutions were announced, including a third-party measurement tool and a first-party tool for ad placement control.
New developments in Content and Augmented Reality:
  • Snapchat's investments in Generative AI and automation led to a 50% year-over-year increase in ML and AI Lenses viewed.
  • New relationship-centred AR formats like "Friend Lenses" and "Q&A Lenses" drove higher engagement and sharing among US Snapchatters.
  • A revamped AR Carousel ranking model boosted discovery, with a 50% increase in new Lenses seen by users since its launch.
  • Improvements in Lens Studio included an AI Assistant for developer support, a Compression tool to optimize assets, and an Animation Curve Editor for enhanced animation editing.
  • Snapchat's Camera Kit technology was integrated at Allegiant Stadium in Las Vegas during Super Bowl LVIII, marking a significant collaboration with the NFL.

“The value we provide our community and advertising partners has translated into improved financial performance,” said Evan Spiegel, CEO. “Our large, growing, and hard-to-reach community, brand-safe environment, and full-funnel advertising solutions have made us an increasingly important partner for businesses of all sizes.”

As Q2 begins, Snapchat anticipates continued growth in its global community, leading to an estimated Daily Active User (DAU) count of approximately 431 million for the quarter. The company is focused on executing its roadmap to deliver enhancements to its direct response (DR) advertising platform, aiming to improve results for advertising partners and drive faster topline growth.

Snapchat's revenue guidance for Q2 is in the range of $1,225 million to $1,255 million, suggesting year-over-year revenue growth of 15% to 18%. Given this revenue guidance and the planned investments for the quarter, the company estimates that Adjusted EBITDA will be between $15 million and $45 million in Q2.

Snapchat Q1 Report Small and Medium Advertisers Snapchat revenue 2024