Media

Snapchat Is Starting to Get the Picture With Q3 Results

Snap Inc. (NYSE: SNAP) 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.

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.