Snap’s third quarter 2024 earnings report | Wilnesh News

break Third-quarter results on Tuesday came in better than expected, but it issued modest fourth-quarter guidance. The stock rose more than 10% in after-hours trading.

Here’s what the company does:

• Earnings per share: Adjusted to 8 cents, vs. 5 cents expected, according to LSEG
• income: $1.37 billion versus expectations of $1.36 billion, according to LSEG
• Global daily active users: The number was 443 million, compared with expectations of 441 million, according to StreetAccount
• Global average revenue per user: $3.10 vs. $3.09 expected, according to StreetAccount

Third-quarter sales increased 15% annually, while Snap’s net loss narrowed to $153 million from $368 million in the same period last year.

Fourth-quarter sales will be between $1.51 billion and $1.56 billion. The midpoint of its guidance was $1.54 billion, below analysts’ average estimate of $1.56 billion. Snap said fourth-quarter adjusted earnings will be between $210 million and $260 million. The midpoint of that range was above analysts’ estimates of $230.7 million.

Snap also announced a $500 million stock buyback program.

The company said it currently has 12 million paid users of Snapchat+. That’s an increase from the 11 million reported in August. The company launched the subscription service in 2022, positioning it as a way for users to experience exclusive and pre-release features for $3.99 per month.

“Our investments in artificial intelligence and augmented reality are bringing new creative experiences to our community and driving innovation across our advertising platform, supporting our long-term growth,” Snap CEO Evan Spiegel said in a statement. Chance.

In September, Snap launched its fifth-generation Spectacles augmented reality glasses, which people can wear to watch digital images spliced ​​into the physical world. The new Spectacles are only available to developers, and if they want to build AR apps for the glasses, they’ll have to pay $99 a month for a year.

Shortly after Snap launched its new Spectacles, Meta CEO Mark Zuckerberg showed off his company’s experimental AR glasses, called Orion. Meta’s Orion AR glasses have sparked enthusiasm among employees, and the company plans to attract developers next year to prepare for an eventual consumer release.

In a letter to investors, Snap discussed the importance of developers to the company’s Spectacles and AR plans.

“We aspire to be the most developer-friendly platform in the world, and we’re excited to offer a new generation of Spectacles to developers as an invitation and inspiration to create new experiences,” Snap said in the letter.

Before the after-hours surge, Snap shares were down 36% for the year, while the Nasdaq was up 25%.