Snapchat reports Q3 revenue of $1.19 billion with increase of 5%

Snapchat reported a Q3 revenue of  $1.19 billion with a net loss of  $368 million (or 23 cents per share).

Snapchat added 9 million daily users and now has an average 406 million users, Wall Street projected 405.8 million daily active users.

Snapchat has told investors that $1.32 billion-$1.375 billion is the expected revenue for Q4 which translates to revenue growth of approximately 2% to 6%. The company reported that it incorporated more than 17 major machine-learning ranking and optimization improvements for app, web, and Dynamic Product Ad (DPA) platforms in Q3.

“Our revenue returned to positive growth in Q3, increasing 5% year-over-year and flowing through to positive adjusted EBITDA as our reprioritized cost structure demonstrated the leverage in our business model. We are focused on improving our advertising platform to drive higher return on investment for our advertising partners, and we have evolved our go-to-market efforts to better serve our partners and drive customer success.” CEO Evan Spiegel said. 

The company is expecting a limited ad revenue in Q4 due to the Israel-Hamas war. The company stated that it had already 'observed pauses in spending from a large number of primarily brand-oriented advertising campaigns' after the onset of the war.

Snapchat’s $4/month subscription service which has prerelease and experimental features has topped up to 5 million subscribers in Q3. which translates to an annual run rate of more than $240 million.

Snapchat’s addition of MyAI chatbot has led to 200 million people sending more than 20 billion messages on the service.