Snap Inc. (SNAP) delivered a strong performance in the third quarter, exceeding analysts’ expectations for both revenue and earnings. The social media giant reported revenue of $1.373 billion, surpassing the consensus estimate of $1.358 billion, according to Benzinga Pro. This represents a 15% year-over-year increase.
Snap also reported adjusted earnings of 8 cents per share, beating analyst estimates of 5 cents per share. These positive results highlight the company’s ability to drive growth and improve financial performance.
The company’s user base continues to expand. Daily active users climbed 9% year-over-year to 443 million, demonstrating the platform’s continued appeal.
Snap’s financial health is also strong. The company generated operating cash flow of $116 million and free cash flow of $72 million during the quarter. Snap ended the quarter with a healthy cash position of $3.2 billion in cash, cash equivalents, and marketable securities.
CEO Evan Spiegel expressed his satisfaction with the team’s progress, noting the strong community growth and deepening engagement. He also emphasized the company’s investments in AI and AR, which are powering innovative creative experiences for users and driving innovation across Snap’s advertising platform. These investments are crucial for Snap’s long-term growth strategy.
In a move reflecting confidence in the future, Snap’s board of directors authorized a share buyback program of up to $500 million. This program aims to offset dilution related to employee stock grants.
Looking ahead, Snap anticipates fourth-quarter revenue to be in the range of $1.51 billion to $1.56 billion, exceeding analyst estimates of $1.558 billion.
Snap’s stock price jumped 6.15% after hours, reaching $11.56 at the time of publication, a clear indication of investor confidence in the company’s performance. The company will discuss these results in more detail during a conference call with analysts and investors at 5 p.m. ET.
