Snap shares fall more than 10% after quarterly report — CNBC

Snap shares fell more than 10% after the publication of its third-quarter report, in which Snapchat’s parent company missed analysts’ forecasts for revenue and the number of daily active users. This was reported by CNBC.

Snap’s third-quarter revenue amounted to $1.72 billion, compared with expected $1.73 billion, according to LSEG data. The number of daily active users worldwide was 495 million, while StreetAccount analysts had forecast 499 million. Average revenue per user was $3.48, in line with forecasts.

Quarterly financial results

Snap’s sales rose 14% year over year. The company posted net income of $56 million, compared with a net loss of $104 million a year earlier. Snap’s adjusted earnings totaled $383 million, exceeding StreetAccount analysts’ forecast of $337 million.

Loss per share was 3 cents, but CNBC notes that this figure cannot be directly compared with analysts’ forecasts.

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Outlook for the next quarter

Snap expects fourth-quarter revenue in the range of $1.95 billion to $1.99 billion. The midpoint of this range is higher than Wall Street’s estimate of $1.95 billion. The company also forecasts adjusted earnings of $490 million to $525 million, while analysts expected $498 million.

In a letter to investors, Snap said it plans to make the number of monthly active users worldwide its main audience metric starting from the first quarter of 2027. The company counted 977 million such users in the third quarter.

Snap said daily activity has historically remained a stable share of monthly activity, but the company does not intend to optimize Snapchat for daily use at the expense of long-term value for the community.