Snapchat grows to more than 400 million users

Generative AI features and a growing subscription business have been bright spots for the company.

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Snapchat grew to more than 400 million users, Snap announced in its third-quarter earnings report. The app added nine million new users in the last quarter, bringing its total daily active users (DAUs) to 406 million, an increase of 12 percent from last year, the company said.

The milestone comes a little more than a year after Snap laid off about 20 percent of its workforce in an effort to cut costs as advertising revenue slowed. Those cuts, along with new product features, are apparently starting to pay off.

The company reported $1.19 billion in revenue for the quarter, an increase of 5 percent from last year and better than Wall Street analysts expected, according to CNBC. In a statement, Snap pointed to its subscription service, Snapchat+, as a key part of its strategy to grow its non-advertising sources of revenue. Snap announced last month that Snapchat+, which offers users exclusive and experimental features for $4 a month, had reached five million subscribers.

Generative AI has also been a bright spot for the company. The company’s MyAI chatbot, which rolled out to all Snapchat users in April, has reached more than 200 million people who have collectively exchanged more than 20 billion messages with the OpenAI-powered chatbot. Snap said it believes the assistant is one of the “most used AI chatbots available today.”