Snap shares jump 10% on profit beat, stock buyback
Snap reported third-quarter results on Tuesday that beat on the top and bottom lines, but the company issued light fourth-quarter guidance.
Snap reported better-than-expected third-quarter results on Tuesday but issued light fourth-quarter guidance. The stock jumped more than 10% in extended trading.
Here is how the company did:
Earnings per share: 8 cents adjusted vs. 5 cents expected, according to LSEG
Revenue: $1.37 billion vs. $1.36 billion expected, according to LSEG
Global daily active users: 443 million vs. 441 million expected, according to StreetAccount
Global average revenue per user: $3.10 vs. $3.09 expected, according to StreetAccount
Sales jumped 15% from a year earlier in the third quarter, while Snap's net loss narrowed to $153 million from $368 million a year prior.
Fourth-quarter sales will be between $1.51 billion and $1.56 billion. The midpoint of its guidance is $1.54 billion, which is below the average analyst estimate of $1.56 billion. Snap said its adjusted earnings for the fourth quarter will be between $210 million and $260 million. The middle of the range is higher than analysts' estimates of $230.7 million.
Snap also announced a $500 million stock repurchase program.
The number of Snapchat+ paying subscribers is now at 12 million, the company said. That is up from the 11 million it reported in August. The company debuted its subscription service in 2022, pitching it as a way for users to experience exclusive and prerelease features for $3.99 a month.
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