Snap Inc. (NYSE: SNAP) released third-quarter financial results after markets closed Tuesday. The company said that it had a net loss of $0.04 per share and $446 million in revenue, compared with consensus estimates that called for a net loss of $0.05 per share and $434.79 million in revenue. The same period from last year had a net loss of $0.12 per share and $297.69 million in revenue.
During the quarter, daily active users (DAU) increased to 210 million compared to 203 million in the previous quarter, and 186 million in the third quarter last year.
At the same time, average revenue per user (ARPU) increased by 33% to $2.12, compared the third quarter from last year.
Looking ahead to the fourth quarter, the company expects to see revenues in the range of $540 million to $560 million and an adjusted EBITDA to be between breakeven and a loss of $20 million. The consensus estimates are calling for breakeven earnings and $555.31 million in revenue for the coming quarter.
Evan Spiegel, Snap CEO and Co-Founder, commented:
We delivered strong results this quarter, and we are pleased that the investments we have made are continuing to drive the growth of our community and our business. We are a high growth business, with strong operating leverage, a clear path to profitability, a distinct vision for the future, and the ability to invest over the long term. We are excited about executing on the many opportunities in front of us.
Shares of Snap closed Tuesday at $14.00, with a 52-week range of $4.82 to $18.36. The stock has a consensus analyst price target of $13.20. Following the announcement, the stock was down about 5% at $13.30, in the after-hours trading session.