The head of Snapchat operator Snap, Evan Spiegel, presents the new generation of Spectacles in Los Angeles on Sept. 17, 2024.
Andrej Sokolow | Picture Alliance | Getty Images
Snap reported better-than-expected third-quarter results on Tuesday, but issued light fourth-quarter guidance. The stock jumped more than 10% in extended trading.
Here is how the company did:
- Earnings per share: 8 cents adjusted vs. 5 cents expected, according to LSEG
- Revenue: $1.37 billion vs. $1.36 billion expected, according to LSEG
- Global daily active users: 443 million vs. 441 million expected, according to StreetAccount
- Global average revenue per user: $3.10 vs. $3.09 expected, according to StreetAccount
Sales jumped 15% from a year earlier in the third quarter, while Snap’s net loss narrowed to $153 million from $368 million a year prior.
Fourth-quarter sales will be between $1.51 billion and $1.56 billion. The midpoint of its guidance is $1.54 billion, which is below the average analyst estimate of $1.56 billion. Snap said its adjusted earnings for the fourth quarter will be between $210 million and $260 million. The middle of the range is higher than analysts’ estimates of $230.7 million.
Snap also announced a $500 million stock repurchase program.
The number of Snapchat+ paying subscribers is now at 12 million, the company said. That’s up from the 11 million it reported in August. The company debuted its subscription service in 2022, pitching it as a way for users to experience exclusive and prerelease features for $3.99 a month.
“Our investments in AI and AR are powering new creative experiences for our community and driving innovation across our advertising platform, underpinning our long term growth opportunity,” Snap CEO Evan Spiegel said in a statement.
In September, Snap debuted the fifth generation of its Spectacles augmented reality glasses that people can wear to see digital imagery spliced into the physical world. The new Spectacles are only available to developers who must pay $99 a month for one year if they want to build AR apps for the glasses.
Shortly after Snap announced the new Spectacles, Meta CEO Mark Zuckerberg revealed his company’s experimental AR glasses called Orion. Meta’s Orion AR glasses have generated enthusiasm from employees and the company plans to attract developers next year in prelude for an eventual consumer launch.
In a letter to investors, Snap discussed the importance that developers play for the company’s Spectacles and AR initiatives.
“We aspire to be the most developer-friendly platform in the world, and we are excited to offer our new generation of Spectacles to developers as an invitation and inspiration to create new experiences,” Snap said in the letter.
Prior to the after-hours pop, Snap shares were down 36% for the year compared to the Nasdaq’s 25% gain.
