Snap Inc.
(NYSE:SNAP) CEO Evan Spiegel said the company's subscription business has significant untapped potential, adding that it has only begun to capitalize on the opportunity.
During the earnings call on Monday, the CEO highlighted that fewer than 3% of its monthly active users currently pay for subscriptions, leaving "substantial room" to increase subscriber penetration over time through premium features, AI-powered creative tools, as well as additional subscription products.
Asked about the growth potential for Snap's subscriber base, Spiegel said it's still early for the company's subscription business but noted that app-based subscription services across the industry typically achieve 7%–12% user penetration over the long term.
The CEO said the key to increasing adoption is continuously adding value to subscription offerings, highlighting the newly launched Lens+ and its AI-powered features as a major future growth driver.
