In This Article:
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Revenue: $1.56 billion in Q4, up 14% year-over-year.
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Advertising Revenue: $1.41 billion in Q4, up 10% year-over-year.
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Other Revenue: $143 million in Q4, driven by Snapchat+ subscriptions.
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Daily Active Users (DAU): 453 million in Q4, an increase of 39 million year-over-year.
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Adjusted EBITDA: $276 million in Q4, up from $159 million in the prior year.
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Net Income: $9 million in Q4, compared to a net loss of $248 million in the prior year.
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Free Cash Flow: $182 million in Q4.
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Full Year Revenue: $5.36 billion, up 16% year-over-year.
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Full Year Adjusted EBITDA: $509 million.
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Snapchat+ Subscribers: 14 million in Q4.
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Infrastructure Costs per DAU: $0.84 in Q4.
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Adjusted Gross Margin: 57% in Q4.
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Cash and Marketable Securities: $3.4 billion at the end of Q4.
Release Date: February 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Snap Inc (NYSE:SNAP) reported a 14% year-over-year increase in Q4 revenue, reaching $1.56 billion, driven by growth in direct response advertising and Snapchat Plus subscriptions.
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Daily active users grew to 453 million in Q4, marking an increase of 39 million year-over-year, with notable growth in the Rest of World segment.
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Snapchat Plus subscribers doubled from 7 million to 14 million in 2024, contributing significantly to revenue growth with a 131% year-over-year increase in other revenue.
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The company achieved $276 million in adjusted EBITDA for Q4, reflecting improved profitability and a 60% adjusted EBITDA flow-through.
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Snap Inc (NYSE:SNAP) continues to innovate with new ad placements like sponsored Snaps and promoted places, which have shown promising early results in increasing advertiser reach.
Negative Points
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Brand-oriented advertising revenue declined by 1% year-over-year, indicating continued weakness among large clients, particularly in North America.
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The company faces challenges in migrating story ad demand to new formats, impacting engagement with certain user cohorts who prefer the traditional stories page.
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Infrastructure costs increased due to investments in machine learning and AI, with costs per daily active user remaining a concern.
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Legal costs, including litigation and regulatory compliance, are expected to rise, contributing to higher adjusted operating expenses.
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Despite growth in active advertisers, the ramp-up period for new advertisers to reach full revenue potential remains a challenge, impacting overall revenue growth.
Q & A Highlights
Q: Can you talk about the early results around Simple Snap now that it's rolled out to more than 25 million users? Are you seeing any differences across user geos? A: Evan Spiegel, CEO: We're seeing encouraging testing results, especially with engagement metrics like increased content active days. However, we are still working on migrating story ad demand and addressing engagement losses with users who prefer the current tile-based layout. We have several ideas to address these issues and will roll them out in the coming weeks and months.