Snap Inc (NYSE:SNAP) shares got off to a rocky start on Wednesday after the companys third quarter results revealed a 7 million increase in daily active users and 50% year-over-year revenue growth.
The social media giant saw its active users in the quarter increase 13% to 210 million, revenue grow to $446 million from $298 million and its adjusted losses narrow to $0.04 per share from $0.12 per share.
That beat expectations on all three fronts, topping estimates of 4 million new users, $435 in revenue and adjusted losses of $0.05 per share.
Investors initially sent shares as high as $14.38 Wednesday morning before dropping them 5.8% on the day to $13.19.
“We delivered strong results this quarter, and we are pleased that the investments we have made are continuing to drive the growth of our community and our business,” CEO Evan Spiegel said in a statement. “We are a high growth business, with strong operating leverage, a clear path to profitability, a distinct vision for the future, and the ability to invest over the long term.”
Looking ahead, the company expects fourth quarter revenue of between $540 million and $560 million, which would mean year-over-year growth of between 38% and 43%. Analysts are projecting revenue of $555.4 million.
The company added that it is continuing to invest in augmented reality. Read More – Source
