Snap has reached a major milestone as its direct-revenue segment surpassed a $1 billion annualized run rate, fueled largely by the continued growth of its Snapchat+ subscription service. The company also reported that its total subscriber base has now exceeded 25 million users.
Beyond Snapchat+, Snap’s direct-revenue ecosystem includes tools such as Memories and various in-app purchases. The shift toward subscription-driven income comes as the company seeks to diversify its business model in a competitive social media landscape dominated by larger platforms.
Advertising still accounts for the majority of Snap’s earnings, but slowing ad growth has pushed the company to build more stable revenue channels. CEO Evan Spiegel previously described this strategy as a turning point, aiming to transform direct revenue into a long-term growth engine.
Snap is also testing a new subscription feature that will allow creators to generate recurring income from dedicated followers. The pilot program is set to begin on February 23 with a small group of creators in the United States.
Despite daily active users reaching 474 million, the platform saw a slight drop compared to the previous quarter. Meanwhile, Snap continues to invest in future-facing products, including its AR smart glasses subsidiary Specs.
