In its fourth quarter 2021 investor report, Snapchat’s parent company Snap revealed that it is finally making a profit after going public nearly five years ago. Snap reported a 64% increase in its annual revenue compared to last year. In addition, the company disclosed that its daily active users increased by 20% over the year.
Snap Inc. finally making a profit
According to the investor report, Snap Inc. has total revenue of $4.1 billion in 2021. However, the company’s net income was only $23 million, which is minuscule when compared to the company’s total revenue. Nevertheless, it was one of the best years for Snap, as the company finally turned a profit after going public in 2017. There were times when Snap struggled to grow the user base for Snapchat and to handle huge losses.
This year, however, the company was able to: collect more than 2 million daily active users, with a total of 319 million users. It comes as a positive factor for the company, as Meta, one of Snap’s competitors, reported yesterday that: Facebook lost 1 million daily active users throughout the year, which is a first for the company.
“2021 has been an exciting year for Snap and we have made significant strides in growing our business and serving our global community. The strength of our core business has enabled us to accelerate our investments in augmented reality, changing the way the Snapchat community experiences the world through our camera.” said Snap CEO Evan Spiegel in a statement.
Additionally, Snap Inc achieved revenue of 1.3 billion in the fourth quarter of 2021, leading to a 42% increase in profit. While the ephemeral messaging app suffered from Apple’s App Tracking Transparency and Lost Advertiser Revenuelike other platforms, it looks like it’s finally coming back into play. Snap’s stock price rose about 52% after it released its earnings report, which is great news for the company’s investors.
While fewer Snapchat stories are being shared, Spiegel says so Snapchat users are consuming more premium and Spotlight content other than sharing Snap Stories with friends or families. The number of Spotlight users is said to have doubled since the last quarter of 2020. So going forward, the company expects to earn more from its premium offering and its TikTok-like feed Spotlight.
So all in all, it was a good year and a good fourth quarter for Snap Inc! Do you also use Spotlight more than posting Stories? Let us know in the comments below.