Snap Inc. (NYSE: SNAP) has reported a solid fourth quarter, with revenue climbing 14% year-over-year to $1.56 billion, as the company continues to expand its global advertising business. Daily Active Users (DAUs) reached 453 million, marking a 9% year-over-year increase, while Snap posted a net income of $9 million, a stark turnaround from a $248 million loss in the prior year.
Co-Founder and CEO Evan Spiegel credited the company’s performance to increased advertiser engagement and the evolution of Snap’s advertising platform. “In 2024, we made significant progress on our core priorities of growing our community and improving depth of engagement, driving top-line revenue growth and diversifying our revenue sources, while building toward our long-term vision for augmented reality,” Spiegel said. “Active advertisers more than doubled in Q4, with the improvements we have made to our advertising platform driving improved advertiser performance and helping to grow revenue 14% year-over-year.”
Australia and APAC performance
The Asia-Pacific (APAC) region, including Australia, played a key role in Snap’s overall revenue growth, benefitting from strong advertiser adoption and increasing engagement among younger audiences. While region-specific figures were not disclosed in the earnings release, Snap has been ramping up efforts in Australia and other APAC markets, capitalising on the growth of direct response advertising and the increasing use of Snapchat’s augmented reality (AR) tools by brands.
The company’s expanding advertiser base in Australia has been instrumental in driving local revenue, with retail, entertainment, and CPG brands leveraging Snap’s suite of ad products to target highly engaged audiences. The company has also been strengthening partnerships with local media and content creators, further embedding itself within Australia’s digital ecosystem.
Global advertising and market expansion
Globally, Snap saw a surge in advertising revenue, driven by an increase in direct response ad spend and the expansion of its Snapchat+ subscription model, which saw 131% year-over-year growth. The company noted that active advertisers more than doubled in Q4, benefiting from enhancements to its ad platform.
In the U.S., Sponsored Snaps and Promoted Places contributed to a 30% increase in reach for advertisers. Meanwhile, the European market witnessed a 20% revenue increase, fuelled by higher engagement rates and improved monetisation strategies.
The Rest of the World (ROW) segment—excluding North America and Europe—delivered the highest growth, surging 35% year-over-year. This was attributed to rising adoption in emerging markets, where Snapchat’s user base continues to expand rapidly.
Product innovation and user engagement
Snap’s ability to drive revenue growth has been closely linked to its continued investment in product innovation and user engagement:
• DAUs grew to 453 million, up 9% year-over-year.
• More than 1 billion Snaps were shared publicly on Snapchat every month in Q4.
• The Snap Star program saw a 40% increase in creator participation.
• New Bitmoji stickers and location-sharing tools were launched to enhance engagement.
Monetisation and AR growth
Snap’s revenue growth is increasingly diversified, supported by multiple monetisation streams:
• Snapchat+ subscription revenue surged 131% YoY, with an annualised run rate exceeding $500 million.
• The company launched Footsteps, a new Snapchat+ feature allowing users to track visited locations.
• A unified Monetisation Program for creators was introduced, enabling new revenue opportunities via Spotlight and Stories.
• The launch of branded Dreams AI Lenses with partners like Uber Eats and Tinder drove increased engagement.
Augmented Reality and Spectacles expansion
Snap continues to invest in augmented reality (AR) as a key differentiator:
• Over 400 million Snapchatters engaged with new Gen AI Lenses more than 4 billion times in Q4.
• The first-ever Pre-Generated AI Lens significantly reduced GPU utilisation.
• Lens Studio downloads surpassed 1 million.
• The number of Snaps featuring Lenses grew 49% YoY, while Snaps with Lenses sent between friends increased 40%.
In addition, Snap is building the next-generation AR operating system for Spectacles:
• A new Snap OS version was released, improving Spectacles camera capabilities.
• First-party Lenses introduced interactive learning tools, including piano and soccer tracking models.
• Developers have built advanced Lenses for calligraphy, pool shots, and outdoor adventures.
• Snap expanded Spectacles availability to six new countries in Europe.
• Challenge Tags were introduced, allowing AR developers to be rewarded for creativity.
• A new educational pricing model makes Spectacles more accessible to students, with a $49.50/month subscription fee.
Overall revenue and financial strength
For the full year 2024, Snap’s total revenue rose 16% to $5.36 billion, reflecting consistent momentum across its advertising and subscription businesses. Adjusted EBITDA saw an impressive 215% increase to $509 million, demonstrating improved cost efficiencies and a disciplined approach to growth.
Snap’s free cash flow reached $219 million for the year, marking a significant turnaround from just $35 million in 2023. The company’s renewed focus on profitability, platform innovation, and AR development positions it well for sustained growth in 2025.
Snap’s outlook for 2025 remains optimistic, with further investments in AI-driven ad solutions, AR-powered experiences, and creator monetisation programs. The company will continue expanding in high-growth APAC markets, including Australia, as it seeks to capture a larger share of the digital advertising pie.