Snapchat's efforts to expand its subscription service have proven successful, with the company reporting 14 million Snapchat+ subscribers as of Q4 2024. The subscription service has significantly contributed to Snap's revenue growth, with the "other revenue" unit, primarily driven by Snapchat+ subscriptions, experiencing a 131% year-over-year increase. The unit achieved an annualized revenue run rate exceeding $500 million. Despite the launch of new features, the AI-generated stickers are not yet powered by Snap's recently unveiled AI text-to-image research model, though this may change in the future.
Key takeaways:
- Snapchat is enhancing its Snapchat+ subscription service by introducing AI-generated stickers and self-destructing Snaps for subscribers.
- The AI-generated stickers feature allows users to create custom stickers that match their message, similar to offerings from Meta and Apple.
- Snapchat's new self-destructing Snaps feature, part of "Snap Modes," enables users to send Snaps that disappear if not viewed within a set time frame.
- Snapchat+ has significantly contributed to Snap's revenue growth, with 14 million subscribers and a substantial increase in the company's "other revenue" unit.