Snap increases revenue and doubles active advertisers in Q3
Snap has enjoyed a 15% leap in revenue for the September quarter, reaching US$1.373 million (A$2.09m).
This fell within the estimated range and is “despite weaker demand from certain consumer discretionary verticals including technology, entertainment, and retail,” according to Snap’s CEO Evan Spiegel.
Net loss ‘improved’ 58% year-over-year, to sit at US$153 million for the quarter (down from US$368 million), with the company’s adjusted EBITDA improving 229% year-over-year, to US$132 million.
The company has free cash flow of US$72 million, which is a “critical stepping stone to future GAAP profitability”.
In terms of user-stats, Snapchat+ subscribers more than doubled year-over-year to exceed 12 million in the September quarter. Daily active users increased 9% year-over-year to 443 million.
Content engagement has increased, with total time spent watching content up by 25% year-on-year, while active advertisers more than doubled year-on-year.
Direct Response ad revenue growth was up 16% year-over-year, which Snap says was “driven by continued strong demand for our 7-0 Pixel Purchase optimisation”, which was up more than 160% year-over-year.
“I’m proud of the team’s progress this quarter, delivering strong community growth and deepening engagement while driving improved financial performance,” said Spiegel.
“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.”
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Nathan Jolly is the Features Editor at Mumbrella. He joined the team in July, 2023.
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