Snapchat+ Powers Snap Inc.’s Revenue Diversification

Snap Inc. (NYSE: SNAP), the parent company of Snapchat, launched its paid subscription service, Snapchat+, in July 2022. This strategic move came as Snap faced headwinds from a softening digital ad market. Aimed at diversifying revenue beyond advertising, Snapchat+ has gained significant traction over the last two years, growing from 2 million subscribers in 2022 to an estimated 13.9 million in 2024, according to Visible Alpha consensus.

Revenue from Snapchat+ is projected to surge from $28 million in 2022 to $449 million in 2024, contributing 8% to Snap’s total revenue. This shift reduces Snap’s dependency on advertising, which accounted for 99% of revenue in 2022, and is expected to see its share drop to 92% in 2024.

Snap’s overall revenue is also set for a rebound. Following a modest +0.1% year-over-year increase in 2023, Snap’s total revenue is expected to jump +16%, reaching $5.3 billion in 2024. The bulk of this growth comes from a recovery in advertising revenue, which is estimated to rise by +10% year-over-year, hitting $4.9 billion in 2024, having declined by -3% last year.