Snap Inc. (NYSE: SNAP) posted a 43% increase in revenue in the third quarter to $297 million. All the other financial data from the company was ugly. Based on most metrics, Snap continues to die and management has no way to stop that. The anxiety around its fortunes has driven its share price to an all-time low.
Snap’s net loss of $325 million compares to a loss of $443 million in the year-ago quarter. It could perversely be called an improvement. Just as bad, daily active users were up only 1% from the previous quarter to 186 million. By this most important metric to measure social media companies, Snap is a failure.
On the news, Snap’s shares reached $6.12, down from a 52-week high of $21.22. Over the past two years, the stock has lost 74% of its value.
Additionally, Snap management announced low expectations for the upcoming periods:
Revenue is expected to reach a new high of between $355 million and $380 million, or grow between 24% and 33% compared to Q4 2017. Adjusted EBITDA is expected to be between $(100) million and $(75) million, compared to $(159) million in Q4 2017.
Adjusted EBITDA is the way Snap wants investors to view its profits. Even based on this measure, Snap’s troubles continue.
Speaking about the results, Tim Stone, Snap’s chief financial officer, said:
We’re investing in long-term growth opportunities and driving operational efficiencies. We achieved record revenue and strong bottom-line results this quarter and expect a record fourth quarter, as we continue to invest in innovation for our community and scale our business.
They are records Snap should not be proud of.