Snapchat’s Snapchat+ program has more than 2 million paying subscribers, the company said in its latest earnings report. Snap said the $3.99 monthly paid plan is part of its “diversification” of revenue streams.
The social network first launched his Snapchat+ in June 2022 in countries such as the US, Canada, UK, France, Germany, Australia, New Zealand and the United Arab Emirates. It has since expanded its subscription service to India, Kuwait, Qatar, Oman, Bahrain, Egypt, Israel, Denmark, Norway and the Netherlands.
Within 60 days of the launch of Snapchat+, Snap had his 1 million subscribers. As such, it took the company a relatively long time to reach 2 million paying users.
Snapchat+ offers users features like the ability to pin someone as their No. 1 friend; priority in replies to Snap Star, the company’s program for popular creators; and the ability see “the general direction of travel for where friends have moved recently” if they have turned on location sharing.
Last quarter, the company introduced new features to subscriptions, including: B. Custom notification sounds, story flow controls, customizable chat backgrounds, gift plan options.
Snap subscriptions fared much better than traditional Twitter Blue subscriptions, according to data from analytics firm Sensor Tower. By the end of October, consumers had spent a total of $6.4 million on his Twitter app. By comparison, Snap’s paid plans generated him $28 million after launch, with many opting for his $39.99 annual plan. The company, led by Elon Musk, has rolled out his new Twitter Blue plan for $8 a month, though there are no estimates of how many people are actually paying for it.
Snap registered a revenue of $1.3 billion in Q4 2022, which was marginally higher than $1.298 billion for the same period in 2021. The company noted that its annual revenue jumped 12% from $4.1 billion to $4.6 billion. It also had a 17% bump in daily active users to get to the 375 million mark. However, Snap posted a loss of $288 million in the quarter, having earned a net $23 million in 2021 for the same period.
The social media platform said that the company’s revenue could decline by up to 10% year-on-year because of stiff competition from apps like TikTok. It is holding a Snap Investor Day event on February 16 to outline its plan for the future.
The company has been aggressively pushing to achieve revenue growth. In addition to subscription plans, the social network is also testing ways for people to pay for lenses. What’s more, Snap could also start charging people to restore his broken Snap streak, according to a Business Insider report published Tuesday.