Snapchat announces a revenue of $1.37 billion for Q3 2024, marking a 15% increase from $1.19 billion in the same quarter last year. The platform currently has 443 million daily active users, reflecting a year-over-year increase of 9%.
The revenue growth is largely attributed to Snap’s ongoing investments in artificial intelligence (AI) and augmented reality (AR), which have significantly enhanced user experience.
CEO Evan Spiegel expresses pride in the company’s progress, noting the strong growth in community engagement and financial performance. He emphasizes that investments in AI and AR are fostering innovation in advertising and creating new experiences for users.
Additionally, Snap Inc. announces a stock repurchase program of up to $500 million for its Class A common stock, set to occur over the next 12 months, depending on market conditions and stock price. This initiative aims to counteract dilution from employee stock units and promote a culture of ownership within the company.
As of September 30, 2024, Snap Inc. reports a robust balance sheet with $3.2 billion in cash and marketable securities.
In terms of financial performance, the company reduces its net loss to $153 million from $368 million the previous year, representing a 58% improvement. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rise to $132 million, up 229% year-over-year. Operating cash flow improves to $116 million, and free cash flow reaches $72 million, compared to a negative $61 million last year. The diluted net loss per share decreases to $0.09, an improvement of 61% from $0.23 in Q3 2023. Furthermore, non-GAAP diluted net income per share increases to $0.08, up 300% from $0.02 the previous year.
User engagement also shows significant growth, with a 25% increase in time spent watching content. Spotlight, the video-sharing feature, averages over 500 million monthly active users, a 21% rise from the previous year.
To enhance advertising capabilities, Snap introduces new formats such as Sponsored Snaps and Promoted Places. The premium subscription service, Snapchat+, reaches 12 million subscribers, more than doubling year-over-year.
With a continued focus on community engagement and technological advancements, Snap Inc. remains optimistic about its long-term growth prospects.
