Snap (SNAP) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue grew 14% year-over-year to $1.56 billion, with net income of $9 million, reversing a $248 million loss in Q4 2023.

• Daily Active Users (DAUs) reached 453 million in Q4, up 9% year-over-year, with notable growth in Rest of World regions.

• Adjusted EBITDA for Q4 was $276 million, up from $159 million a year ago, and free cash flow increased 65% to $182 million.

• Full-year 2024 revenue was $5.36 billion, up 16% year-over-year, with a net loss of $698 million, improved from $1.32 billion in 2023.

• The company focused on product innovation, ad platform improvements, and expanding AR and creator ecosystems.

Financial highlights

• Q4 total revenue: $1.56 billion (+14% YoY); advertising revenue: $1.41 billion (+10% YoY); other revenue (mainly Snapchat+): $143 million (+100% YoY).

• Q4 gross margin was 57%, up from 54% last year; adjusted EBITDA margin was 18%.

• Q4 ARPU was $3.44, up from $3.29; North America ARPU reached $9.73, up 9% YoY.

• Q4 operating cash flow was $231 million, up 40% year-over-year; free cash flow was $182 million.

• Cash, cash equivalents, and marketable securities totaled $3.4 billion at year-end.

Outlook and guidance

• Q1 2025 revenue guidance: $1.325–$1.36 billion; DAU expected to reach approximately 459 million.

• Q1 adjusted EBITDA expected between $40 million and $75 million.

• Full-year 2025 adjusted operating expenses projected at $2.7–$2.75 billion; headcount to grow 8–10%.

• Infrastructure cost per DAU expected to range from $0.82–$0.87 per quarter in 2025.

• Management highlighted ongoing macroeconomic and geopolitical uncertainties that may impact future results.