In its third-quarter earnings report, Snap reported a loss per share of 3 cents, which was not comparable to analysts' estimates. Revenue reached $1.72 billion, slightly below the expected $1.73 billion, while daily active users totaled 495 million, missing the 499 million forecast.
Despite these misses, Snap's revenue grew 14% year-over-year, and it achieved a net income of $56 million, a significant improvement from the $104 million net loss in the previous year. Adjusted earnings of $383 million exceeded the $337 million anticipated by analysts.
Looking ahead, Snap projected fourth-quarter revenue between $1.95 billion and $1.99 billion, slightly above Wall Street's expectations, and adjusted earnings between $490 million and $525 million, also above the $498 million forecast.
In a strategic shift, Snap plans to focus on globally monthly active users as its primary audience metric starting in the first quarter of 2027, indicating a long-term approach to user engagement rather than prioritizing daily usage.
The company reported 977 million monthly active users for the quarter and emphasized that maintaining daily engagement as a percentage of monthly engagement has been stable historically. This shift in focus aims to align reported metrics with product and safety decisions that foster community relationships and sustainable growth