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Snap (NYSE:SNAP) has slid 17% after third-quarter earnings where the company reported profits that beat expectations and the company authorized a stock buyback of up to $500M, but revenues fell just short of expected 6.4% growth, and the company declined to offer guidance for Q4.
Revenues rose to $1.13B, a 6% increase that fell short of some lowered Wall Street expectations and also marked the company’s record low growth rate.
The company also beat user growth forecasts, with daily active users up 19% to 363M (vs. consensus for 358.7M). The figure was up sequentially and year-over-year across Snap’s regions (North America, Europe, and Rest of World).
Net loss swelled to $360M from a prior-year loss of $72M (including restructuring charges of $155M), and adjusted earnings before interest, taxes, depreciation and amortization slipped to $73M from $174M.
Operating cash flow fell to $56M from a prior-year $72M, and free cash flow dipped to $18M from $52M.
In other operating metrics, total time spent watching Spotlight rose 55%, and daily average time spent for Snapchatters 35 and older (watching Shows and publisher content) rose by more than 40% year-over-year.
The board authorized a stock repurchase program of up to $500M in class A common stock, to offset some of the dilution coming from issuing restricted stock units to employees.
As of Sept. 30, Snap had $4.4B in liquidity.
“Given uncertainties related to the operating environment, we are not providing our expectations for revenue or adjusted EBITDA for the fourth quarter of 2022,” the company said.
Snap’s (SNAP) Conference call is now scheduled to come at 5:30 p.m. ET.
Image and article originally from seekingalpha.com. Read the original article here.