Snap Q3 revenue fails to beat expectations, stock price down 25%
Disappearing message pioneer Snap this afternoon reported its Q3 revenue, failing to meet analyst expectations for the quarter.
Revenue for the quarter was $1.06 billion, yielding a net loss of 17 cents per share. Analysts had been modeling $1.1 billion and an EPS of 8 cents.
The report sent Snap shares falling by 25% in late trading.
Snap's daily average users rose to 306 million, an increase of 57 million, or 23%, year over year, the company said. That beat analyst expectations, which pegged the number at 301.9 million.
For the current quarter, the company sees revenue of $1.16 billion to $1.2 billion. That compares to the industry consensus of $1.36 billion.
CEO Evan Spiegel focused on the increase in daily active users, noting that the company celebrated its 10th anniversary this quarter.
"We are excited about the long-term opportunity and potential for our business, as we grew our community to 306 million daily active users, and grew our revenue 57% year-over-year to reach $1.067 billion for the quarter," Spiegel said.
"We're now operating at the scale necessary to navigate significant headwinds, including changes to the iOS platform that impact the way advertising is targeted, measured, and optimized, as well as global supply chain issues and labor shortages impacting our partners. We will continue to focus on delivering strong results for our advertising partners and innovating to expand the capabilities of our platform and better serve our community."