Snapchat company achieves revenue growth with an increase in its user base

Snapchat has announced its financial results for the third quarter of 2023 and revealed efforts to improve its advertising platform.

The company recorded revenues of $1.19 billion in this quarter, representing a 5% increase, with a net loss of $368 million.

The number of Snapchat users in this quarter increased to nine million daily users, leading to a 12% rise in total daily active users to 406 million compared to the previous year.

The company's CEO, Evan Spiegel, highlighted this success and emphasized their focus on enhancing their advertising platform to generate higher revenues for their advertising partners.

The company expects fourth-quarter revenues to range between $1.32 billion and $1.375 billion, indicating revenue growth close to 6%. They partially attributed the decline in advertising in the Middle East in the last quarter of the year to ongoing events in the region.

During the third quarter, Snapchat implemented more than 17 major improvements in the ranking and performance of machine learning and enhanced its applications and dynamic product advertising platforms.

Snapchat's $4 per month subscription service, +Snapchat, surpassed five million subscribers in this quarter, indicating significant growth in non-advertising revenues.

Snapchat launched the My AI service in April 2023, allowing over 200 million people to send more than 20 billion messages through this artificial intelligence-powered chatbot. This achievement followed the company's decision to lay off about 20% of its employees to reduce costs as advertising revenues slowed down, highlighting the success of these measures and new features.