Snap CEO Evan Spiege has revealed how its AI innovations are driving revenue that grew 15 percent to $1.373 billion in Q3 2024 compared to $1.189 billion in the prior year.
“Our investments in AI and AR are powering new creative experiences for our community and driving innovation across our advertising platform, underpinning our longterm growth opportunity,” Snap CEO Evan Spiegel said.
Snap introduced AI-powered innovations designed to foster user engagement, deepen connections, and enhance content personalization. Here’s a breakdown of the key highlights:
Snap integrated AI with Snapchat Memories, enabling users to share AI-generated collages and video mash-ups, enriching the way users interact and share moments.
Snap expanded its partnership with Google Cloud, tapping into Gemini’s multimodal capabilities on Vertex AI. This advancement enhances the performance of “My AI,” Snap’s chatbot, leading to a three-fold increase in snaps sent to My AI within the U.S. quarter-over-quarter.
Snap’s ML models for ranking and personalization received a boost in Q3, improving content recommendations on Spotlight based on users’ historical preferences. New models were optimized for new users, and multimodal ML models were deployed to better recognize video, text, and audio, amplifying relevance in creator content.
Snap tested an AI video generation tool allowing creators to produce dynamic videos from simple text or image prompts. This contributed to a 50 percent year-over-year increase in creators posting content, fueling a 25 percent global increase in time spent watching content year-over-year.
AR engagement is thriving, with more than 375,000 AR creators worldwide having developed over 4 million Lenses. A notable hit was the “Past and Future Me” AI Lens, viewed over 650 million times. New GenAI tools in Lens Studio, including animation features and “Easy Lens,” now empower creators to produce AR experiences quickly and efficiently.
Snap launched its fifth-generation Spectacles, stand-alone AR glasses powered by Snap OS, designed for immersive, hands-free AR experiences. These glasses allow users to interact with My AI, browse the web, and display multiple screens for on-the-go productivity, expanding the possibilities of AR.
Snapchat’s daily active users grew by 9 percent year-over-year, totaling 443 million during the third-quarter of 2024.
Snap’s investment in machine learning improved ad targeting and accessibility for small- and medium-sized businesses helped attract advertisers back to the platform.
Snap introduced ad formats to drive demand from larger advertisers, including ads on the Snap Map, which have received positive feedback from brands aiming to increase in-store foot traffic.
For Q4, which includes the holiday shopping season, Snap expects revenue between $1.51 billion and $1.56 billion.
Snap’s investment in AI and ML technology has also driven up infrastructure costs, contributing to a 16 percent increase in adjusted cost of revenue. However, these initiatives have fueled global content engagement and strengthened Snap’s AR ecosystem, positioning the platform for long-term success.
Baburajan Kizhakedath
