TikTok's uncertain position in the market has created significant opportunities for Snapchat, with the platform seeing notable growth in both users and revenue during Q4 2024.

Snap reported $1.55 billion in revenue, marking a substantial increase from $1.36 billion the previous year. The platform now boasts 453 million daily active users, representing a 9% year-over-year growth. Most significantly, the company achieved a net income of $9 million, rebounding from a $248 million loss in the previous year.

CEO Evan Spiegel noted that advertisers are actively diversifying their spending across platforms, while creators are seeking to build more distributed audience engagement. Advertising revenue reached $1.41 billion, accounting for nearly all of Snap's revenue and showing a 10% year-over-year increase.

The platform's Snap Star program has driven a 40% increase in creator posting activity. Looking ahead to Q1 2025, Snap projects reaching 459 million daily active users and revenue between $1.32 and $1.36 billion.

Key developments for 2025 include:

• Planned increase in operating expenses (11-12% year-over-year)
• Additional investments in hiring and marketing
• Development of a simplified Snapchat experience
• $5 million donation to Los wildfire relief efforts

Despite lower-than-expected Q1 earnings projections due to increased investments, Snap's growth trajectory remains strong, particularly as it capitalizes on TikTok's market uncertainties.

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