Snapchat Is Starting to Get the Picture With Q3 Results
Snap Inc. (NYSE: SNAP | SNAP Price Prediction) released third-quarter financial results after markets closed Tuesday. The company reported $0.01 in earnings per share (EPS) and $678.67 million in revenue, compared with consensus estimates that called for a net loss…
Snap Inc. (NYSE: SNAP | SNAP Price Prediction) released third-quarter financial results after markets closed Tuesday. The company reported $0.01 in earnings per share (EPS) and $678.67 million in revenue, compared with consensus estimates that called for a net loss of $0.05 per share and $549.99 million in revenue. The same period from last year had a net loss of $0.04 per share and $446.2 million in revenue.
During the quarter, daily active users (DAU) increased to 249 million compared to 211 million in the third quarter last year. DAUs increased sequentially and year over year on both iOS and Android platforms.
Another stat the company mentioned in the report was that more than 40% of the US Gen Z population watched sports Discover content on Snapchat last month. Also SportsCenter viewership on Snapchat increased by 80% from July to September.
At the same time, average revenue per user (ARPU) increased 28% year over year to $2.73.
On the books, cash, cash equivalents, and marketable securities totaled $2.73 billion, versus $2.11 billion at the end of the previous fiscal year.
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Snap has again declined to issue guidance for the fourth quarter citing the uncertainties of COVID-19. The consensus estimates are calling for $0.02 in EPS and $721.48 million in revenue for the coming quarter.
Shares of Snap closed Tuesday at $28.41, with a 52-week range of $7.89 to $29.08. The stock has a consensus analyst price target of $26.87. Following the announcement, the stock was up about 18% at $33.56, in the after-hours trading session.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
