Snap Inc (NYSE:SNAP) revealed it now has more than 5 million subscribers for its paid service, which gives users early access to features such as an AI-generated selfie maker for $3.99 a month.
The social media platform said it has gained about 2 million paid subscribers since April of this year.
The paid Snapchat+ product has features such as custom wallpapers for chats with friends and the ability to pin a conversation at the top of the inbox for easy access.
At $3.99 a month, the 5 million users would generate an estimated $240 million a year for the company, although it is a fraction of the $4.6 billion in revenue Snap reported last year.
Nonetheless, money generated from subscribers can help offset the investment in new features.
Snapchat+ debuted in June 2022, and CEO Evan Spiegel said earlier this year that his "medium-term goal" is 10 million users.
The company has about 750 million monthly users.
Shares of Snap rose 1.6% to $8.76 in early Friday trading but have fallen 16% over the past 52 weeks.
Contact Sean at sean@proactiveinvestors.com