The UK division of Snapchat has recorded a loss exceeding $757m during its most recent financial year, despite turnover climbing above $2bn, newly published figures have revealed.
Snap Group reported a pre-tax loss of $757.7m (£565.8m) for 2024, according to accounts lodged with Companies House, as reported by City AM.
The figure represents an improvement on the pre-tax loss of $1bn (£746.9m) recorded for 2023.
Meanwhile, Snapchat’s turnover jumped from $1.6bn to $2.1bn over the same timeframe.
The company attributed the revenue growth primarily to an increase in advertisers and auction-based advertising demand, alongside “optimisation efficiencies.”
The average headcount at Snapchat’s UK operation decreased from 437 to 395 during the year.
For the same financial period, Snap Inc, which trades on the New York Stock Exchange, posted turnover of $5.3bn, up from $4.6bn.
Its net loss also narrowed from $1.3bn to $698m during the period.
Snapchat to charge for Memories feature
The financial results emerge after Snapchat revealed at the beginning of October that it would begin charging users for storing their photographs and videos.
The messaging platform has permitted users to save and archive their previously shared content through its Memories feature since its launch in 2016.
However, at the start of this month, Snapchat announced that users holding more than five gigabytes (GB) of Memories will be required to pay to maintain access to them. In a statement unveiling the shift, Snapchat declared: “When we first launched Memories, we never expected it to grow to what it has become today.”
The company further stated: “It’s never easy to transition from receiving a service for free to paying for it, but we hope the value we provide with Memories is worth the cost.
“Thank you for trusting us with some of your most precious moments.
“These changes will allow us to continue to invest in making Memories better for our entire community.”
