Snap Inc. (SNAP, Financial) reported impressive third-quarter earnings, surpassing expectations. Revenue rose 15% to $1.37 billion, outpacing the forecasted $1.36 billion. Net loss significantly decreased to $150 million from last year's $370 million. Adjusted EBITDA surged 229% to $130 million, and adjusted earnings per share reached $0.08, exceeding the anticipated $0.05 per share.
In Q3, Snap's global daily active users (DAU) increased 9% to 443 million, slightly above the predicted 441 million. Revenue per user was $3.10, marginally beating the expected $3.09. The company's subscription service, Snapchat+, launched in 2022, recorded 12 million paid users, up from 11 million previously.
CEO Evan Spiegel highlighted investments in AI and augmented reality as key to innovative experiences and long-term growth. In September, Snap introduced the fifth generation of Spectacles, their augmented reality glasses, available to developers for $99 monthly to create AR applications.
Snap also announced a $500 million stock buyback plan. Looking ahead, the company projects Q4 revenue between $1.51 billion and $1.56 billion, with the midpoint below analysts' expectations of $1.56 billion. However, they anticipate adjusted EBITDA of $210 million to $260 million, with the midpoint above the consensus of $230.7 million.
Post-announcement, Snap shares rose over 9% in after-hours trading.
