Snap Inc. say it is Snapchat The app added 37 million daily active users in the third quarter, bringing its total to 443 million, and time spent watching content grew 25% year over year.

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

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

The increase in active users comes at a pivotal time for Snap, which says it will begin rolling out its new “simple” Snapchat app in Q1 2025 “at the earliest.” The company says that about 10 million users are currently testing it, and that it expects to continue testing and iterating before a wider release.

The new app is meant to improve content discovery by combining Snap and Snapchat Spotlight into one unified video stream and bringing Snap content into its chat functionality.

In the letter, the company says that “we are encouraged by early test results showing content engagement gains among less frequently engaged Snapchat users, as we believe this can be an important contributor to growing impressions and incremental 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 some hiccups as the company migrates to the new app.

“While we believe increased content engagement and demand for new ad placements may develop over time, many of the changes associated with Simple Snapchat are immediate as Snapchatters transition to the new user experience, which poses the risk of short-term disruption “, it is said. written in the letter.

Ultimately, the company believes the new app will drive 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, snap and watch content, which are the three main pages here,” Jim Shepherd, Snapchat’s director of global creators and content partnerships. said The Hollywood Reporter in an interview last month. “We feel strongly that these behaviors are mutually reinforcing.”

And in the letter, the company indicated that its effort to generate new content among creators is working:

“Our efforts to support creators helped increase the number of creators posting content by approximately 50% year-over-year in Q3,” the company wrote. On the earnings call, Spiegel also said the company is now testing an AI-based video generation tool that’s also meant to turbocharge content growth.