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Snap’s stock price jumped 18% after hours on Tuesday as the company posted unexpected, adjusted gains in its third-quarter earnings with positive user and revenue growth.
Here he explained:
- Adjusted earnings per share: 1 percent Vs Expected loss of 5 cents per refinitiv
- Revenue: $ 679 million Vs. $ 555.9 million per refiniv
- Global Daily Active Users (DAU): 249 million vs. 244.12 million per factset
- ARPU: $ 2.73 vs $ 2.27 per factset
The company’s net loss fell to $ 200 million, about 12% less than last year’s net loss of $ 227 million.
Snap reported 249 million daily active users, about 4% of the 238 million the company reported in July. This figure is about 19% compared to the company’s 210 million daily users a year ago.
Snap CEO Evan Spiegel said in a statement, “The adoption of augmented reality is happening faster than before, and we are working as a team to work on many opportunities before us.”
Snap said it used the third quarter as an opportunity to engage with brands that were “looking to align their marketing efforts with platforms that share their corporate values.”
This coincides with the StopHateForProfit Facebook ad boycott, in which more than 1,000 advertisers stopped advertisements on the social network during the July month boycott of the company’s abusive language and misinformation policies.
Snap Chief Business Officer Jeremy Gorman said in prepared remarks, “This gave us the opportunity to engage with advertisers and agencies in real-time to ensure that our existing partners as well as new prospects also value our values The offer made sense. ”
Snap said year-over-year revenue growth of 47% to 50% for the fourth quarter, Snap chief financial officer Derek Anderson said in prepared remarks. Anderson said the company expects to reach about 257 million DAUs in the fourth quarter.
However, Snap also expects year-over-year spending growth to be higher in the fourth quarter, as compared to the year to date.
Anderson said, “There remains uncertainty about the macro operating environment, we are pleased with the strength of the underlying momentum established with our advertising partners, and we remain highly optimistic about the long-term prospects for our business” comments.