Snap Inc., the parent company of Snapchat, announced during its third-quarter earnings call that it has experienced significant growth in daily active users and positive feedback on its new ad formats and redesigned layout. CEO and co-founder Evan Spiegel shared that the platform now has 443 million daily active users, with strong engagement in international markets.
The company’s major redesign, known as “Simple Snapchat,” aims to enhance user experience through streamlined navigation and improved content discovery. Currently in testing, the new layout has garnered approximately 10 million users across dozens of countries, with particularly favorable results on Android devices.
Snap Inc. also introduced two new ad formats, Sponsored Snaps and Promoted Places, which are expected to drive future revenue growth by offering more targeted ad placements. Spiegel highlighted the strong adoption of these formats by small- and medium-sized businesses, contributing to a doubling of active advertisers year-over-year. The company’s new tools, such as Snap Promote and expanded Campaign API integrations, have facilitated this growth.
In terms of financial performance, Snap reported third-quarter revenue of $1.373 billion, surpassing the consensus estimate of $1.358 billion. The company also exceeded analyst expectations with adjusted earnings of 8 cents per share, compared to the projected 5 cents per share.
Snap’s stock had previously experienced a decline of approximately 45% this year. In response, the company plans to launch new ad placements powered by machine learning and automation. Additionally, Snap unveiled smart glasses last month, emphasizing its commitment to augmented reality (AR) technology.
This focus on bolstering the ad business and expanding AR capabilities comes as Snap faces stiff competition from major social media platforms like Meta Platforms Inc. (formerly Facebook) and TikTok, which is owned by ByteDance.