Snapchat Exceeds $1B Annual Revenue, Surpasses 25M Subscribers
In a blog post, Snap said: "Every day, millions of people use Snapchat to connect with friends and family in ways that feel personal and real. Today, we're excited to share that our direct revenue category-the portfolio of products where Snapchatters support the platform directly-has exceeded a $1B annualized revenue run rate. This milestone is anchored by our global subscription community, which has now surpassed 25 million members. Since launching in late 2022, Snapchat+ has become one of the fastest-growing consumer subscription services globally, with subscriber growth every quarter. What started as an early-access program for our most engaged Snapchatters has quickly scaled into a meaningful business-one that now represents a strong and growing revenue stream alongside our ads business... Snapchat plays an intimate role in people's lives-it's where millions connect everyday with the people who matter most to them. With more than 946 million monthly active users worldwide, Snapchat is on a path toward reaching one billion people globally... Looking ahead, we're continuing to grow Snapchat+ with ongoing investment in customization and community-driven features. Yesterday, we announced we're expanding opportunities for creators with Creator Subscriptions, a new product that allows fans to subscribe directly to creators for exclusive content, priority engagement, and an ad-free experience within creators' Stories."
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- Significant Revenue Growth: Snap Inc. announced that its direct revenue business has exceeded a $1 billion annualized revenue run rate, showcasing the company's success in diversifying its revenue streams and enhancing market confidence in its future growth.
- Expanding User Base: Snapchat's global monthly active users have reached 946 million, nearing the target of one billion, which provides greater advertising revenue potential and strengthens its competitive position in the market.
- Growing Subscription Community: Snap's global subscription community has surpassed 25 million members, indicating the increasing appeal of its Snapchat+ service, which could provide a stable revenue source for the company in the future.
- Positive Market Reaction: The company's shares rose 4% in midday trading, reflecting investor optimism regarding Snap Inc.'s growth prospects, which may attract more attention from investors towards its stock performance.
- User Growth Milestone: Snap's global monthly active users reached 946 million in Q4 2025, an increase of 51 million or 6% year-over-year, indicating significant progress in user acquisition and retention, thereby enhancing its competitive position in the market.
- Revenue Diversification Strategy: Snap's direct revenue segment exceeded a $1 billion annualized revenue run rate, demonstrating the company's success in launching paid services like Snapchat+, Lens+, Snapchat Platinum, and Memories Storage Plans, aimed at diversifying revenue sources to tackle market challenges.
- Creator Subscriptions Feature: Snap launched alpha testing for Creator Subscriptions on February 23, allowing creators to monetize their loyal fan base, which is expected to further enhance the platform's content ecosystem and user engagement, driving long-term revenue growth.
- Earnings Beat Expectations: Snap reported Q4 2025 revenue of $1.72 billion, a 10% increase that surpassed analyst expectations of $1.70 billion, showcasing success in in-app optimizations and new formats, although future revenue projections are slightly below market expectations.
- Trial Context: Meta CEO Mark Zuckerberg is set to testify in Los Angeles Superior Court as part of a significant trial likened to the social media industry's 'Big Tobacco' moment, centered on a young woman claiming addiction to social media has harmed her mental health.
- Allegations: Plaintiff's lawyers accuse Meta and competitors like YouTube and TikTok of misleading the public about the safety of their services, knowing their app designs and features harm young users' mental health, while Meta denies these claims, stating that the jury must determine if Instagram was a substantial factor in the plaintiff's issues.
- Industry Implications: This trial is viewed as a 'Big Tobacco' moment for the social media sector, highlighting growing public concern over potential harms, which could lead to stricter regulations and legal liabilities affecting Meta and its peers' operational frameworks.
- Additional Lawsuits: Meta is also involved in a major trial in New Mexico, where the state's attorney general alleges the company failed to protect children and young users from online predators, intensifying public scrutiny over social media safety measures.
- Trial Context: Meta CEO Mark Zuckerberg is set to testify in Los Angeles Superior Court as part of a landmark trial likened to the social media industry's 'Big Tobacco' moment, focusing on a young woman's allegations of social media addiction, highlighting widespread public concern over social media safety.
- Allegations: Lawyers for the plaintiff claim that Meta, YouTube, TikTok, and Snap misled the public about the safety of their services, knowing that their app designs and certain features harmed young users' mental health; Meta denies these allegations, asserting that the jury must determine whether Instagram was a substantial factor in the plaintiff's mental health struggles.
- Industry Response: Instagram chief Adam Mosseri testified last week that while problematic social media usage exists, he does not equate it with clinical addiction, a viewpoint that may influence public perceptions of social media use and spark broader discussions about its impacts.
- Future Trials: In addition to the Los Angeles trial, Meta faces another significant trial in New Mexico, where the state attorney general alleges that the company failed to protect children and young users from online predators, indicating increasing legal and public scrutiny on social media companies.
- Revenue Model Shift: PerplexityAI is abandoning ads to focus on subscriptions and enterprise clients, aiming to achieve $200 million in annual recurring revenue (ARR) by 2025, which will provide a more sustainable revenue stream and enhance its market competitiveness.
- Enterprise Sales Team Expansion: The company currently has a five-person enterprise sales team and plans to grow it in the coming months to better serve high-powered professionals such as finance experts and CEOs, thereby improving customer satisfaction and revenue stability.
- Product Security Warning: PerplexityAI's CEO expressed concerns about the security of its AI browser, Comet, as audits revealed vulnerabilities when handling complex workflows, particularly when users exploit it to complete online courses and exams, raising the risk of misuse.
- Continued Free Access: Despite the shift towards enterprise clients, PerplexityAI will maintain free access with rate limits to retain its user base and attract more potential customers, ensuring a degree of user loyalty in a competitive market.
- Meta Expands Commitment: Meta Platforms announced a new deal to purchase tens of billions of dollars worth of Nvidia chips and hardware for its AI needs, further solidifying their decade-long partnership and expected to significantly boost Nvidia's sales growth.
- Portfolio Update: Nvidia disclosed new stakes worth $2.3 billion in Snap and $1.1 billion in Nokia, while also revealing a $7.9 billion stake in Intel, showcasing its strategic positioning and confidence in the semiconductor market.
- Positive Market Reaction: Nvidia shares rose 1.4% in early premarket trading on Wednesday, reflecting market optimism regarding the new agreement with Meta, while Intel's stock also gained 1% due to Nvidia's investment, indicating investor confidence in the semiconductor sector.
- Hedge Fund Turns Bearish: Despite the stock rally, New York-based Stanphyl Capital has taken a short position on Nvidia, arguing that some hyperscalers will announce reduced capex, potentially leading to a significant drop in Nvidia's stock price, highlighting market uncertainty ahead.










