Simple Snapchat app launch kit for Q1 2025

Snap Inc. says its Snapchat app added 37 million daily active users in its third quarter, giving it 443 million in total, and time spent watching content rose 25 percent year over year.

Revenue was $1.37 billion, up 15 percent year over year, while the company posted a net loss of $153 million, a significant improvement over a year earlier when its loss was over $368 million.

“I’m proud of the team’s progress this quarter, delivering strong community growth and deeper engagement while driving improved financial performance,” said Snap CEO Evan Spiegel. “Our investments in AI and AR are driving new creative experiences for our community and driving innovation across our advertising platform, supporting our long-term growth opportunities.”

The growth in active users comes at a crucial time for Snap, which says it will begin rolling out its new “simple” Snapchat app in Q1 2025 “at the earliest.” The company says that about 10 million users are currently testing it, and that they expect to continue testing and iterating before a wider launch.

The new app is intended to improve content discovery by combining Snap and Snapchat Spotlight into one unified video feed and bringing Snap content to its chat functionality.

In the letter, the company says that “we are encouraged by early test results showing gains in content engagement among less frequently engaged users of Snapchat, as we believe this can be an important input to impression growth and increased reach for advertisers.”

But the company also warned that engagement metrics aren’t as positive on iOS devices as they are on Android, and that there could be some bumps as the company migrates to the new app.

“While we believe the growth in content engagement and demand for the new ad placements can build over time, many of the changes associated with Simple Snapchat are happening immediately as Snapchatters transition to the new user experience, creating a risk of disruption on the cards term,” it said in the letter.

Ultimately, the company believes the new app will create more engagement for users and lead to higher ad revenue.

“By simplifying the experience, we’re really doubling down on how people actually use their phones, chat, snap and watch content, which are the three main sides here,” Jim Shepherd, Snapchat’s director of global creators and content partnerships, told The Hollywood Reporter in an interview last month. “We feel really strongly that those behaviors are really mutually reinforcing.”