Snapchat Surpasses 800 Million Monthly Active Users

2024-02-08

Snap Inc., the parent company of Snapchat, recently held its fourth-quarter 2023 earnings conference call. The call featured participants such as Evan Spiegel, the CEO and co-founder of Snap Inc., and Derek Andersen, the CFO. Investors were directed to the Investor Relations website at investor.snap.com to access the press release, slides, investor letter, and investor presentation for the conference call.

During the conference call, forward-looking statements were mentioned, highlighting that these statements were based on assumptions made by the company and that actual results may differ. The call also discussed both GAAP and non-GAAP measures, with certain expenses figures excluding items such as stock-based compensation and depreciation.

Snap's key priorities for Q4 2023 were focused on growing the community and improving the depth of engagement, driving top-line growth, diversifying revenue sources, and carving a path to adjusted EBITDA profitability and positive free cash flow. The company saw an increase in monthly active users, surpassing the 800 million milestone with over 8% year-over-year growth. Daily active users also reached a significant milestone.

Snapchat's long-term success centered around three initiatives: evolving machine-learning models for more ad interactions, unifying the content experience across Spotlight and Stories, and shifting focus towards user growth and engagement in highly monetizable geographies. The company made improvements to Spotlight, including ranking and model enhancements, and aimed to unify the UI and navigation between Spotlight and Stories to provide a seamless user experience.

Snapchat's ad business focused on improving performance for advertisers, increasing daily active usage, deepening content engagement, and accelerating revenue growth. The company saw positive growth rates in its lower-funnel business and small and medium-sized advertisers.

In terms of regional focus, Snap invested more in growth in North America and Europe, particularly on iOS, and aimed to resurrect users who had tried Snapchat or were not using the service frequently. The company saw opportunities for further growth in these regions and believed there was headroom to continue expanding its user base.

Snapchat had been working on improving its advertising platform, with a focus on direct response objectives for advertising partners. The company saw positive results, including significant growth in purchase-related conversions and an increase in small and medium-sized customers.

To support growth and profitability, Snap made changes to its cost structure and had been working towards reaching a sustainable level of stock-based compensation. The company also managed its share count through share buybacks. Additionally, Snap utilized AI technology to enhance its advertising capabilities and improve user experience.

Overall, the Snap Inc. fourth-quarter 2023 earnings conference call covered various topics, including user growth, revenue diversification, advertising strategies, cost structure, and future initiatives. The company remained focused on driving engagement, expanding its user base, and achieving profitability.