Snap Revenue and User Growth Miss Estimates Despite Stronger Fourth-Quarter Outlook
Snap reported third-quarter revenue of $1.72 billion, below the $1.73 billion estimate, while global daily active users reached 495 million versus 499 million expected. Adjusted earnings were $383 million, ahead of the $337 million analyst forecast, and fourth-quarter revenue guidance of $1.95 billion to $1.99 billion had a midpoint above Wall Street expectations. Shares fell over 10% after the report, and Snap said monthly active users will become its primary audience metric starting in the first quarter of 2027.
Why it matters
The revenue and user-growth shortfalls weighed on Snap shares, while the higher fourth-quarter revenue outlook provides an offsetting factor for investors. Changing the primary audience metric to monthly active users will also affect comparisons with future user-growth reports.
Key facts
- 1Snap reported 495 million global daily active users against 499 million expected. cnbc.com
- 2Third-quarter adjusted earnings totaled $383 million, compared with the $337 million analyst forecast. cnbc.com
- 3Snap forecast fourth-quarter revenue between $1.95 billion and $1.99 billion. cnbc.com
- 4Snap said monthly active users will become its primary audience metric in the first quarter of 2027. cnbc.com
- 5Snap reported third-quarter profit of $56.5M, or 3 cents per share, while adjusted EPS was 15 cents. finance.yahoo.com
Open questions
- Materials differ in their characterization of third-quarter revenue relative to expectations, with some describing it as meeting forecasts and another reporting a miss.
- The materials present third-quarter per-share earnings differently, including a reported loss per share in one account and profit or adjusted EPS figures in others.
Summary written by AlphAI AI Desk from 10 of 10 sources. Not investment advice. Figures are as stated by the linked sources.