Snap shares jumped after earnings as the company saw third quarter revenue rise 15% to over $1.37 billion, beating Wall Street estimates.
Daily active users (DAUs) rose 9% to 443 million, and total time spent watching content increased 25% year-over-year, Snap said. Snapchat is ad driven and the company said the number of active advertisers doubled from the year before.
The social media platform’s net loss for the three months ended in September narrowed by over half to $158 million (from negative $368 million in the year earlier quarter). And free cash flow, a key metric for investors, was $72 million, compared with negative $61 million.
The numbers follow a glum second quarter when the company missed estimates and the stock tumbled. It’s shot up by over 10% on the number, before settling back, up about 3% in after-market trading.
“I’m proud of the team’s progress this quarter, delivering strong community growth and deepening engagement while driving improved financial performance,” said CEO and founder Evan Spiegel. “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 also said its board of directors authorized a stock repurchase program of up to $500 million of its Class A common shares.
In its letter to investors, Snapchat gave some color around its Q3 introduction of a new, simplified version of Snapchat organized into three core experiences focused on “communicating with friends, using the camera, and watching entertaining content.” About 10 million Snapchatters are using Simple Snapchat across dozens of countries, it said.
Spiegal and Snap execs will take questions from Wall Street on a call at 5 pm ET.
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