Snap, parent company of Snapchat, turned in better results than Wall Street expected for the third quarter of 2023, as the company touted improvements to its ad platform.
Overall, Snap posted Q3 revenue of $1.19 billion, an increase of 5%, and a net loss of $368 million (or 23 cents per share). Analyst consensus estimates for the company were $1.11 billion in revenue and a net loss of 24 cents per share, according to FactSet. Shares of Snap were up more than 5% in after-hours trading on the beat.
Snapchat gained 9 million daily users in the period, to stand at an average of 406 million. That compares with Wall Street’s projection of 405.8 million daily active users for the app, per FactSet.
“Our revenue returned to positive growth in Q3, increasing 5% year-over-year and flowing through to positive adjusted EBITDA as our reprioritized cost structure demonstrated the leverage in our business model,” CEO Evan Spiegel said in a statement. “We are focused on improving our advertising platform to drive higher return on investment for our advertising partners, and we have evolved our go-to-market efforts to better serve our partners and drive customer success.”
During Q3, Snap said, it implemented more than 17 major machine-learning ranking and optimization improvements for app, web and Dynamic Product Ad (DPA) platforms.
In announcing the results, the company said COO Jerry Hunter had notified Snap that he will retire. Hunter joined Snap seven years ago and served “an important role in building the company’s engineering and business structures,” according to the company. Hunter will “continue to support Snap through July 1, 2024 to help ensure this transition is effective,” Snap said.
More to come
