Snapchat’s worldwide user base continues to increase due to the addition of 11 million new daily active users in the last three months and reaching a total of 443 million users which is a 9% increase.
However, the rise in the number of users have not been translated into profits as the company is still running at a loss.
Snap, the company behind Snapchat, has faced challenges in turning this increasing user count into profits.
In the third quarter, revenue increased by 15% compared to the previous year, reaching $1.37 billion, slightly exceeding analyst predictions.
However, the company reported a loss of $153 million, which represents a 58% improvement from the $368.3 million loss during the same period last year.
Snap’s revenue primarily comes from advertising on the Snapchat platform.
For the next quarter, which includes the Christmas season, Snap expects revenue to be between $1.51 billion and $1.56 billion, in line with analysts more optimistic projections.
After the announcement of a $500 million share buyback, Snap’s stock increased by approximately 7% in after-hours trading.
Comments