Snap Shares Drop 10% After Q3 Revenue Misses at $1.72 Billion
Updated
Updated · CNBC · Nov 4
Snap Shares Drop 10% After Q3 Revenue Misses at $1.72 Billion
3 articles · Updated · CNBC · Nov 4
Summary
Snap fell more than 10% after third-quarter revenue came in at $1.72 billion versus $1.73 billion expected and daily active users reached 495 million, below the 499 million forecast.
Those misses overshadowed stronger profitability: adjusted earnings hit $383 million versus $337 million expected, while net income improved to $56 million from a $104 million loss a year earlier.
Sales still rose 14% year over year, and ARPU matched expectations at $3.48, suggesting the selloff centered on audience growth rather than monetization.
For the fourth quarter, Snap guided revenue to $1.95 billion-$1.99 billion and adjusted earnings to $490 million-$525 million, both roughly at or above Wall Street estimates.
Snap also said it will make monthly active users its primary audience metric starting in Q1 2027; third-quarter MAUs were 977 million.