Snap Inc. claims that its Snapchat The app added 37 million daily active users during its third quarter, giving it a total of 443 million, and time spent watching content increased 25% year over year .

Revenue was $1.37 billion, up 15% year-over-year, while the company reported a net loss of $153 million, a significant improvement over the year previous year, where its losses exceeded $368 million.

“I’m proud of the team’s progress this quarter, which delivered strong community growth and deep engagement while improving financial performance,” said Evan Spiegel, CEO of Snap. “Our investments in AI and AR are driving new creative experiences for our community and driving innovation across our advertising platform, supporting our long-term growth opportunity.

The growth in active users comes at a pivotal 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 around 10 million users are currently testing it and they plan to continue testing and iterating before a wider launch.

The new app is intended to improve content discovery, combining Snap and Snapchat Spotlight into a unified video feed and integrating Snap content with its chat functionality.

In the letter, the company states that “we are encouraged by early test results that show content engagement gains among Snapchat’s less frequently engaged users, as we believe this can be an important contribution to the impression growth and additional reach for advertisers.

But the company also warned that engagement metrics aren’t as positive on iOS devices as they are on Android, and that there could be challenges as the company migrates to the new app.

“While we believe growth in content engagement and demand for new ad placements may grow over time, many changes associated with Simple Snapchat occur immediately as Snapchatters transition to the new user experience , which presents a risk of disruption in the short term,” he says. wrote in the letter.

Ultimately, the company believes the new app will garner more user engagement and lead to higher ad revenue.

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

And in the letter, the company indicated that its efforts to generate new content among creators are paying off:

“Our efforts to support creators contributed to the number of creators publishing content increasing approximately 50% year over year in the third quarter,” the company wrote. During the earnings call, Spiegel also said the company is currently testing an AI-powered video generation tool, which also aims to boost content growth.