Snap sales grow 5% from last year

Snap said in its "internal projection" that the company expects to sell between $1.32 and $1.38 billion in its fourth-quarter, as opposed to the $1.33 billion analysts expected.

Snap CEO Evan Spiegel cited the company's positive growth in Q3 in a press release, and credited its cost-cutting initiatives for helping to improve the business.

Snap announced that its Chief Operating Officer, Jerry Hunter is retiring after seven year at the company. The company has also authorized a stock purchase program up to $500,000,000.

Snapshots

After-hours shares initially rose as high as 20% as the company beat both its top and bottom line. However, investors settled for a slight drop as they digested the news that advertisers had stopped spending after the start of the Middle East war.

This is what the company did.

Earnings per share

LSEG (formerly Refinitiv) estimates a loss of 4 cents compared to the analysts' expectations.

Earnings

LSEG estimates $1.19 billion, compared to $1.11 expected.

Global Daily Active Users

According to StreetAccount, the actual number is 406 million as opposed to 405.7 million.

Average revenue per user:

StreetAccount expects $2.73 versus $2.93.

The company reported a return of sales growth in the third quarter. Revenues increased 5% over the year before.

Snap said in its "internal projection" that the company expects fourth-quarter sales to range from $1.32 billion up to $1.38billion, as opposed to the $1.33billion analysts expected. Snap announced that it will not provide official guidance for the fourth quarter "due the unpredictable nature war." This is a change from its previous position.

quarter

When it provides official guidance.

The company reported that it had "observed pauses" in advertising spending for a number of campaigns primarily focused on brand awareness immediately after the start of the Middle East war, which has affected its sales in the current quarter.

The third-quarter GAAP net loss of the company increased by 2% over last year to $368.8 million, or 23 cents a share.

Snapchat+ is the company's subscription service

Service

In the last quarter, a subscription service that costs $3.99 per month reached 5 million users, an increase from 4 million in the previous quarter.

Snap CEO Evan Spiegel cited the company's positive growth in Q3 in a press release, and credited its cost-cutting initiatives for helping to improve the business.

Snap announced last summer that the company would be launching a new product.

Layoff

Over 6,000 people make up 20% of Snap's workforce. Snap continued to cut costs until September of this year.

You can also read about the importance of this in our article

It shut down its enterprise augmented reality business, which resulted in the departure of 170 employees.

In a statement, Spiegel stated that "We have improved our advertising platform in order to increase the return on investment of our advertising partners. We have also evolved our go-to market efforts to better service our partners and to drive customer success."

Snap announced that Jerry Hunter, its Chief Operating Officer, will retire after seven years with the company.

The company has also announced that it has authorized an up to $500,000,000 stock repurchase plan. The company said that as of September 30th 2023, it had $3.6 billion in cash and cash equivalents.

Watch

:

Snapchat+ has reached 4M subscribers.