Quarterly numbers
The company’s brand-oriented advertising business fell 3% YoY while its direct response advertising business grew 3%. Snap recorded revenue growth across all its geographic regions, with the highest of 11% coming from Rest of World.
User growth and engagement
Snap saw its daily active users (DAUs) increase 10% year-over-year to reach 414 million in the fourth quarter. DAUs remained flat in North America at 100 million. In Europe, DAUs grew 4% to 96 million while in Rest of World, DAUs rose 19% to 218 million.
Monthly active users (MAUs) increased 8% YoY and crossed the 800 million milestone in Q4. Average revenue per user (ARPU) decreased 5% YoY to $3.29. ARPU increased by 2% and 5% respectively in North America and Europe, but declined 7% in Rest of World.
During the quarter, Snap witnessed growth in overall time spent watching content globally, driven mainly by time spent on Spotlight. Total time spent watching Spotlight content increased over 175% YoY, while average MAU watching Spotlight increased over 35%.
In its report, the company said that although it sees significant long-term potential for community growth in Rest of World, it plans to currently focus on community growth in its more mature markets like North America and Europe.
Outlook
For the first quarter of 2024, Snap expects revenues to range between $1.09-1.13 billion, representing a YoY growth of 11-15%. It has guided for adjusted EBITDA to be between negative $55 million and negative $95 million in Q1. The company expects DAUs to reach approx. 420 million in Q1.