Snapchat Surpasses 400 Million Users, Reporting Strong Q3 Growth

Snap chat has achieved significant growth, with Snap announcing over 400 million users in its recent third-quarter earnings report. In the last quarter alone, the popular app welcomed nine million new users, boosting its total daily active users (DAUs) to 406 million, representing a remarkable 12 percent increase compared to the previous year.

This milestone marks a remarkable turnaround for Snap, coming just a little over a year after the company had to make a difficult decision to reduce its workforce by approximately 20 percent due to a slowdown in advertising revenue. However, the strategic combination of these layoffs and the introduction of new product features appears to be paying off handsomely.

For the third quarter, Snap reported impressive revenue of $1.19 billion, representing a 5 percent increase compared to the same period in the previous year. This exceeded the expectations of Wall Street analysts, as reported by CNBC . In an official statement, Snap highlighted its subscription service, Snapchat+, as a pivotal element of its strategy to diversify revenue sources beyond advertising. Snapchat+ offers exclusive and experimental features to users for a monthly subscription fee of $4 and recently achieved a milestone of five million subscribers.

Another noteworthy achievement for Snap has been in the realm of generative AI. The company introduced its MyAI chatbot, made in collaboration with OpenAI, to all Snapchat users in April. This chatbot has already made a significant impact, connecting with over 200 million individuals who have collectively exchanged more than 20 billion messages with the AI-powered assistant. Snap expressed confidence in the chatbot's standing, believing it to be one of the most widely used AI chatbots available today.