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Parent company of Snapchat, Snap becomes profitable for the first time ever

Snap, the parent company of Snapchat, has become profitable for the first time, with reaching 319 million daily active users (DAUs) — a 20 per cent growth (on-year).

In the fourth quarter of 2021, Snap reported $1.3 billion in revenue (up 42 per cent) with a net income of $22.6 million.

The company posted 64 per cent growth in its full-year revenue.

“2021 was an exciting year for Snap and we made significant progress growing our business and serving our global community,” said CEO Evan Spiegel.

“The strength of our core business has enabled us to accelerate our investments in augmented reality, transforming the way that the Snapchat community experiences the world through our camera,” he said in a statement late on Thursday.

The growth in DAUs has been 20 per cent or more for five consecutive quarters.

It appears that Apple’s iOS privacy changes that have affected several platforms did not have much impact on Snap’s growth.

In Q4 2021, 25 different Discover partners each reached over 50 million unique Snapchatters globally, including Universal Music’s Rebel Labs, social publisher Jungle Creations’ lifestyle content, and Team Whistle’s sports content.

The company launched two Snap Map Layers, Memories and Explore, which allow users to view their saved Snaps by location and explore new ones around the world and have been used over 100 million times since launch.

“We partnered with e-commerce company Flipkart and cosmetics companies Sugar Cosmetics and MyGlamm to bring more AR shopping and virtual try-on experiences to Snapchatters in India,” Snap said.

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