Snapchat, a social media platform has reported a revenue of $1.37 billion for the Q3 2024, reflecting a 15% increase compared to $1.19 billion in the same period last year with a 443 million daily active users.
According to the report, this growth is attributed to Snap’s continuous investment in artificial intelligence (AI) and augmented reality (AR) technologies, which have enhanced the user experience on its platform.
“DAUs were 443 million in Q3 2024, an increase of 37 million, or 9% year-over-year.”
The report further indicated, “Third quarter revenue increased 15% year-over-year to $1,373 million” the report stated in parts
Evan Spiegel, CEO of Snap Inc., expressed pride in the company’s progress during the quarter, stating, “I’m proud of the team’s progress this quarter, delivering strong community growth and deepening engagement while driving improved financial performance. Our investments in AI and AR are powering new creative experiences for our community and driving innovation across our advertising platform, underpinning our long-term growth opportunity.”
In addition to its revenue growth, Snap Inc. announced the authorization of a stock repurchase program of up to $500 million for its Class A common stock.
The company plans to execute these repurchases through open market transactions or privately negotiated transactions, contingent upon various factors, including stock price and market conditions.
The board has approved the repurchase program for 12 months, although it can be modified or terminated at any time.
The stock buyback aims to offset the dilution resulting from the issuance of restricted stock units to employees, fostering a culture of ownership within the company.
Snap Inc. currently boasts a robust balance sheet, with $3.2 billion in cash, cash equivalents, and marketable securities as of September 30, 2024.
More insights
- The net loss was reported at $153 million, down from $368 million in the prior year, showcasing a 58% reduction. The adjusted earnings before interest, taxes, depreciation, and amortization surged to $132 million, compared to $40 million in the same quarter last year, indicating a remarkable 229% year-over-year increase.
- Operating cash flow also improved to $116 million from $13 million in the previous year, while free cash flow climbed to $72 million from a negative $61 million.
- The company reported a diluted net loss per share of $0.09, an improvement of 61% compared to the $0.23 loss per share recorded in the third quarter of 2023.
- Notably, Snap Inc. also reported a non-generally accepted accounting principles(non-GAAP earnings) diluted net income per share of $0.08, representing a 300% increase from the previous year’s $0.02.
User engagement
The time users spent watching content on the platform increased by 25%, and Spotlight, Snap’s video-sharing feature, averaged over 500 million monthly active users, a 21% rise from the previous year.
- The company is also focusing on enhancing its advertising capabilities. Snap introduced new ad formats, including Sponsored Snaps and Promoted Places, to help businesses reach Snapchatters in innovative ways.
- Furthermore, Snap’s premium subscription service, Snapchat+, reached 12 million subscribers in Q3, more than doubling year-over-year.
As Snap Inc. continues to prioritize community engagement and technological advancements, the company remains optimistic about its long-term growth prospects.
