The simple Snapchat app is scheduled to launch in the first quarter of 2025

snap inc. states that it is Snapchat The app added 37 million daily active users in the third quarter, bringing the total number of users to 443 million, and time spent watching content grew 25 percent year-over-year.

Revenue was $1.37 billion, up 15 percent from last year, while the company posted a net loss of $153 million, a significant improvement from a year earlier, when its losses topped $368 million.

“I’m proud of the team’s progress this quarter, delivering significant community growth and deepening engagement, as well as improved financial performance,” said Snap CEO Evan Spiegel. “Our investments in artificial intelligence and augmented reality are delivering new creative experiences for our community and driving innovation across our advertising platform, bolstering our long-term growth opportunities.”

The rise in active users comes at a crucial time for Snap, which says it will begin rolling out its new “simple” Snapchat app “in the first quarter of 2025 at the earliest.” The company says it is currently being tested by about 10 million users and that they plan to continue testing and iterating before a wider launch.

The new app is designed to improve content discovery by combining Snap and Snapchat Spotlight into one unified video stream and adding Snap content to chat.

In the letter, the company says that “we are encouraged by early testing results that show increased content engagement among less frequently engaged Snapchat users, as we believe this could be an important contributor to impression growth and increased advertiser reach.”

But the company also warned that engagement rates on iOS devices are not as positive as on Android, and that there may be some bumps in the company’s transition to the new app.

“While we believe that increased content engagement and demand for new ad space may increase over time, many of the changes associated with Simple Snapchat occur immediately as Snapchat users migrate to the new user interface, which poses the risk of short-term disruptions,” the message says. wrote in a letter.

Ultimately, the company believes the new app will increase user engagement and lead to increased advertising revenue.

“By simplifying the experience, we’re really doubling down on how people actually use their phones, communicate, take pictures and watch content, which are the three main pages here,” Jim Shepherd, Snapchat’s director of global creator and content partnerships. said Hollywood Reporter in an interview last month. “We really feel strongly that these behaviors are really mutually reinforcing.”

In the letter, the company indicated that its efforts to distribute new content to creators are working:

“Our efforts to support creators contributed to an approximately 50% year-over-year increase in the number of creators publishing content in the third quarter,” the company wrote. In the earnings call, Spiegel also said the company is now testing an artificial intelligence-powered video creation tool that is also intended to accelerate content growth.