Snap's Third Quarter Was a Train Wreck
Snapchat operator Snap (NYSE: SNAP) reported third-quarter results last night, and investors were not happy about it; shares fell 10% in after-hours trading. Revenue jumped 62% to $207.9 million as the company aggressively transitions to its new self-serve ad platform, which both reduces the entry-level cost for advertisers while automating ad sales. The Street was expecting $236.9 million in sales. Daily active users (DAUs) rose sequentially to 178 million, also shy of the consensus estimate of 181.8 million DAUs.
The company's net loss more than tripled to $443.2 million, but Snap considers this exploding bottom line to be "Not Meaningful," listing "NM" under the percent change just like last quarter. (It's not just because Snap is comparing two negative numbers, either, as it lists a percent change for adjusted EBITDA losses widening.)
Image source: Snap.
Source: Fool.com
