Categories AlphaGraphs, Earnings, LATEST, Technology

Snap Q3 loss narrows on higher revenue; stock falls on user slump

A further dip in user count weighed down on Snap’s (SNAP) stock after the company reported a narrower net for the September quarter, aided by strong revenue growth. Though the stock gained sharply after the announcement, it retreated later and slipped into the negative territory.

In the September quarter, adjusted net loss eased to $154.70 million or $0.12 per share from $168.08 million or $0.14 per share a year earlier. Analysts had forecast a wider loss. Reported net loss was $325.15 million or $0.25 per share, compared to a loss of $443.16 million or $0.36 per share last year. Revenues rose 43% to $298 million and topped the Wall Street forecast.

Snap Inc. Q3 2018 earnings
Snap Inc. Q3 2018 earnings infographic

The number of daily active users, a key measure of operating efficiency, moved up 5% to 186 million, which is down 1% sequentially but in line with estimates.

In a sign that the management’s efforts to improve pricing are yielding the desired results, average revenue per user rose to $1.60 and came in above forecasts. The impressive third-quarter results complement the company’s target of achieving breakeven by next year, with continued focus on third-party advertising and strategic content partnerships.

The number of daily active users, a key measure of operating efficiency, moved up 5% to 186 million

Snap is looking for revenues between $355 million and $380 million for the fourth quarter, a new high that represents a 24- 33% year-over-year growth. Adjusted EBITDA loss is expected to narrow sharply from last year to $100 million.

Defending criticism over the app’s controversial redesign, CEO Evan Spiegel recently said the upgrade was done without proper insight, causing it to slow down. The flawed upgrade had resulted in a fall in the number of daily users.

Snap shares have been under stress as profitability continues to elude the company. After having closed Thursday’s regular trading session higher, the stock witnessed sharp fluctuation during the extended trading session and dropped 7%.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

Tyson Foods (TSN) Q1 2023 Earnings: Key financials and quarterly highlights

Tyson Foods Inc. (NYSE: TSN) reported first quarter 2023 earnings results today. Sales rose 2.5% year-over-year to $13.2 billion. Net income attributable to Tyson was $316 million, or $0.88 per

After weak start to 2023, Apple (AAPL) sees some bright spots

Apple Inc. (NASDAQ: AAPL) this week reported its first revenue decline in more than three years, even as the high inflation continues to squeeze customers’ spending power. Sales of the

Earnings: Qualcomm (QCOM) Q1 profit falls on lower revenues

Chipmaker Qualcomm, Inc. (NASDAQ: QCOM) has reported lower earnings and revenues for the first quarter of 2023. The company also provided guidance for the second quarter of 2023. At $9.5

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top