Snap Inc. announced that its direct revenue business has reached an annualized revenue run rate of $1 billion, driven largely by the growth of its global subscription community. The company reported that more than 25 million users are now subscribed to Snapchat+, which launched in late 2022.
Snapchat+ has experienced subscriber growth every quarter since its introduction and is considered one of the fastest-growing consumer subscription services globally. Initially designed as an early-access program for highly engaged users, it has become a significant source of revenue alongside Snap’s advertising business.
“Snapchat+ isn’t just growing quickly. It’s working because it’s built around something deeply human,” the company stated in its announcement.
Snapchat currently serves over 946 million monthly active users worldwide and aims to reach one billion people globally. The success of Snapchat+ is attributed to features that allow users to personalize their experience, such as pinning best friends, customizing chat wallpapers, or adding Bitmoji Pets.
“When you open a conversation with your spouse and see a photo of your children as the background, or chat with siblings and see your family pet appear alongside your Bitmoji, those moments add warmth, context, and joy to everyday communication,” according to the release.
The company continues to expand its direct revenue offerings beyond Snapchat+. New paid products include Lens+, Snapchat Platinum, and Memories Storage Plans. Snap also recently introduced Creator Subscriptions—a product allowing fans to subscribe directly to creators for exclusive content and an ad-free experience within Stories.
“We’re incredibly grateful to the 25 million Snapchatters who choose to subscribe and help shape the future of Snapchat. Their creativity, feedback, and enthusiasm continue to not only inspire what we build next, but invest in an even better Snapchat,” Snap said.
