Snap (SNAP) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue grew 14% year-over-year to $1.56B, with daily active users reaching 453 million and monthly active users surpassing 850 million.

• Full-year 2024 revenue rose 16% to $5.36 billion, with Adjusted EBITDA of $509 million and free cash flow of $219 million.

• Net income for Q4 was $9 million, reversing a prior-year loss, while the full-year net loss narrowed to $698 million from $1.32 billion.

• Significant investments in ad platform, direct-response business, AR, and AI innovation drove growth and profitability.

• Snapchat+ subscribers surpassed 14 million in Q4, contributing about 9% of quarterly revenue.

Financial highlights

• Q4 total revenue: $1.56B (+14% YoY); full-year revenue: $5.36B (+16% YoY); Q4 advertising revenue: $1.41B (+10% YoY); other revenue (mainly Snapchat+): $143M (+100% YoY).

• Q4 Adjusted EBITDA was $276M (up 73% YoY); full-year Adjusted EBITDA was $509M (up 215% YoY); Q4 Adjusted EBITDA margin was 18%.

• Q4 free cash flow was $182M; full-year free cash flow was $219M (up 528% YoY); cash and marketable securities at year-end totaled $3.4B.

• Q4 adjusted gross margin was 57%; Q4 ARPU rose 5% YoY to $3.44; North America ARPU reached $9.73, up 9% YoY.

• Q4 adjusted operating expenses were $612M (+4% YoY); personnel costs decreased 1% YoY due to a 7% decline in headcount.

Outlook and guidance

• Q1 2025 revenue guidance: $1.325–$1.36B; DAU expected to reach approximately 459 million.

• Q1 adjusted EBITDA expected between $40M and $75M.

• Full-year 2025 adjusted operating expenses projected at $2.7–$2.75B; headcount to grow 8–10%.

• Infrastructure cost per DAU expected to range from $0.82–$0.87 per quarter in 2025.

• Targeting 1 billion monthly active users within two years, with a focus on sustainable profitable growth and continued innovation in content, DR ads, and AR.