Dinesh Ramachandran Snapchat’s Q1 2025 report reveals 460 million daily active users, but a 1 million drop in North America raises concerns about future growth.
Snap Inc. reported a 9% year-over-year increase in daily active users (DAUs) for Q1 2025, reaching 460 million globally.However, the company’s performance was mixed, with a 1 million drop in North American DAUs, highlighting challenges in its core market.
The decline in North America follows the company’s decision to abandon its “Simple Snapchat” redesign, which aimed to streamline the app by removing certain features. User feedback indicated that the new design did not resonate with the platform’s highly engaged users, leading to the reintroduction of a “refined” version of the original layout.
Despite the setback in North America, Snap’s international growth remains robust. The “Rest of World” segment saw a 16% increase in DAUs compared to the previous quarter, contributing to the overall user growth. Additionally, Snap’s revenue rose 14% year-over-year to $1.36 billion, driven by increased advertising demand and the expansion of its Snapchat+ subscription service, which now boasts over 9 million subscribers.
However, Snap’s stock experienced a 14% decline in after-hours trading following the earnings report. The company’s decision to withhold Q2 guidance amid economic uncertainties, including potential impacts from U.S. trade policies and advertising slowdowns, particularly from Chinese firms, contributed to investor concerns.
Looking ahead, Snap faces the challenge of revitalizing user engagement in North America while maintaining its growth trajectory in international markets. The company’s ability to navigate these dynamics will be crucial for its long-term success.
