Snap Inc. Q3 Earnings Show 5% Revenue Increase; Daily Active Users Reach 406M Despite Mideast War Impact on Ad Spend

Snap sees wider net loss of $368 million in Q3 but outperforms analyst expectations; their paid subscription service Snapchat+ reached 5 million subscribers contributing towards a non-advertising annualized run rate of more than $200 million.

Despite the impact of the war in the Middle East on advertising spend, Snap. Inc. reported a 5% increase in Q3 revenue, with daily active users reaching 406 million.
The company saw a wider net loss of $368 million, exceeding analysts' expectations. Nonetheless, their paid subscription service Snapchat+ reached 5 million subscribers contributing towards a non-advertising annualized run rate of more than $200 million.
Snap Inc. mentioned that the uncertain nature of the war triggered a pause in many primarily brand-oriented advertising campaigns, affecting their sales. However, many of these campaigns have since resumed, lessening the impact on their daily run rate.
Snap's revenue rose for Q3 to $1.18 billion, up from $1.13 billion, reversing a previous decline for the first time since 2017. An internal forecast for the Q4 revenue lies in the range of $1.32 to $1.37 billion.
Snapchat added 9 million new users in the last quarter, and their artificial intelligence chatbot, My AI, interacted with over 200 million people, exchanging over 20 billion messages.

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