Business · Companies · 5 hrs ago
Snap shares fall more than 10% after revenue and user miss
Snap, the company behind Snapchat, saw its shares fall more than 10% after it missed analysts’ third-quarter revenue and daily user estimates.
Revenue was $1.72 billion, below the $1.73 billion expected, and it had 495 million daily active users, compared with 499 million expected.
Snap’s adjusted earnings beat expectations, while sales rose 14% from a year earlier and the company reported $56 million in net income, reversing a loss the previous year.
Snap said lower spending by consumer goods companies hurt sales, citing economic pressures in the United States and the Middle East.
It plans to seek growth in other areas, including financial services in the United States.
Snap expects fourth-quarter revenue of $1.95 billion to $1.99 billion, a range whose midpoint is above analysts’ estimate, and forecast adjusted earnings of $490 million to $525 million.
Monthly users will become Snap’s main audience measure starting in the first quarter of 2027; the company said it had 977 million monthly active users this quarter.
Snap shares fell more than 10% after the company reported third-quarter revenue and daily active users below analysts’ expectations.
Revenue was $1.72 billion, compared with the $1.73 billion analysts expected.
Snap reported 495 million global daily active users, below the expected 499 million.
Third-quarter adjusted earnings were $383 million, above the $337 million analysts projected.
Snap forecast fourth-quarter revenue of $1.95 billion to $1.99 billion and said it plans to make monthly active users its primary audience metric starting in the first quarter of 2027.
- Who
- Snap Inc., the parent company of Snapchat.
- What
- Its shares fell more than 10% after third-quarter revenue and daily active users missed analysts’ expectations.
- When
- Wednesday, in the company’s third-quarter earnings report.
- Where
- Not stated
- Why
- Revenue and daily active users came in below analysts’ expectations.
This story does not have two clearly opposing sides.
Snap reported revenue of $1.72 billion and 495 million global daily active users, both below analysts’ expectations.
Snap reported its third-quarter results, and its shares fell more than 10%.
Snap plans to make globally monthly active users its primary audience metric.
- Third-quarter revenue
- $1.72 billion
- Global daily active users
- 495 million
- Third-quarter adjusted earnings
- $383 million
- Fourth-quarter revenue forecast
- $1.95 billion to $1.99 billion
- Monthly active users
- 977 million for the quarter
What people are saying
A longer-term horizon better aligns our reported metrics with the product and safety decisions that strengthen relationships, create lasting utility, and support broader, more durable audience growth.
As we look ahead, we're seeing very positive signs of growth from diversified verticals like financial services in the U.S.
macro pressures in the U.S. and also the Middle East