Snap Q4 2023 Earnings: DAUs reached 414 million, up 10% year-over-year

Snap this month reported Q4 2023 results, with growing daily active users (DAUs), strong engagement, and progress on monetization initiatives. Here are the key highlights:

Engagement:

• DAUs reached 414 million, up 10% year-over-year.
• Spotlight content views jumped 175% YoY, and monthly users grew 35%.
• Public Stories by Snap Stars increased over 125% YoY in the US.

Monetization:

• Snapchat+ subscription service reached 7 million subscribers.
• New AI features for subscribers drive engagement and potential ad revenue.
• 7/0 Pixel Purchase model led to a 90%+ increase in purchase conversions.
• Snap Promote simplifies ad creation for new advertisers.
• Creator Collab Campaigns connect brands with influential creators.
• AR Lenses viewed over 3 trillion times, with 300M daily users engaging.

Looking ahead:

• Q1 2024 DAU guidance of 420 million.
• Revenue expected to grow 11-15% YoY.
• Focus on improving direct-response ad platform for better results.

What it means for marketers:

• Snap's growing and engaged user base offers a valuable audience.
• New ad formats and features create opportunities for creative campaigns.
• AR capabilities can enhance brand experiences and drive results.
• Investing in Snap early in its monetization journey could be advantageous.

Despite positive results, Snap still faces challenges, including profitability and competition. Revenue was $1,361 million, compared to $1,300 million in the prior year, an increase of 5% year-over-year. Net loss was $1,322 million in 2023, compared to $1,430 million in 2022.