Snapchat announced in its third-quarter earnings report that the platform has reached more than 400 million users. The company said the app added nine million new users in the latest quarter, bringing its total active daily users to 406 million, up 12 percent from last year. The milestone comes a little more than a year after Snap laid off nearly 20 percent of its workforce in an effort to cut costs as ad revenue slowed. These cuts, along with new product features, are apparently starting to pay off.
Snapchat delivers good quarterly earnings report
The company reported revenue of $1.19 billion for the quarter, up 5 percent from last year and better than Wall Street analysts expected, according to CNBC. In its statement, Snap pointed to subscription service Snapchat+ as an important part of its strategy to increase non-advertising revenue sources. Last month, Snap announced that Snapchat+, which offers special and experimental features to users for $4 a month, reached five million subscribers.
Generative AI has also been a bright spot for the company. The company’s MyAI chatbot, which became available to all Snapchat users in April, has reached more than 200 million people, who have collectively exchanged more than 20 billion messages with the OpenAI-powered chatbot. Snap said it believes the assistant is one of the most used AI chatbots available today.