Snap (SNAP) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 15% year-over-year to $1.373 billion, with daily active users up 9% to 443 million and ARPU rising to $3.10 from $2.93.

• Net loss improved to $153 million from $368 million a year ago, a 58% reduction; adjusted EBITDA rose to $132 million from $40 million.

• Free cash flow reached $72 million, up from negative $61 million a year ago; operating cash flow was $116 million.

• Board authorized a $500 million share repurchase program, funded from $3.2 billion in cash and equivalents.

• The company continues to focus on product innovation, including AR advancements, new AI features, and a simplified Snapchat interface.

Financial highlights

• Advertising revenue was $1.25 billion, up 10% year-over-year, with DR ad revenue up 16%.

• Other revenue, mainly from Snapchat+, more than doubled to $123 million; Snapchat+ subscribers exceeded 12 million.

• Adjusted gross margin was 54%, stable year-over-year; GAAP gross margin was 53%.

• Adjusted EBITDA margin improved to 10% from 3% a year ago.

• Diluted net loss per share improved to $(0.09) from $(0.23) year-over-year; non-GAAP diluted EPS was $0.08.

Outlook and guidance

• Q4 revenue guidance is $1.51–$1.56 billion, implying 11%–15% year-over-year growth.

• Q4 DAU expected to reach approximately 451 million.

• Adjusted EBITDA guidance for Q4 is $210–$260 million.

• Management expects continued macroeconomic and regulatory headwinds to impact advertiser spending and revenue growth.

• New $500 million share repurchase program authorized.