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Sep 30, 2023
Snapchat Q3 2023 Earnings Report
Snapchat's revenue returned to positive growth, increasing 5% year-over-year, with positive adjusted EBITDA achieved through a reprioritized cost structure.
Key Takeaways
Snap Inc. announced its Q3 2023 financial results, with revenue increasing 5% year-over-year to $1,189 million and daily active users (DAU) growing 12% year-over-year to 406 million. The company reported a net loss of $368 million, while adjusted EBITDA was positive at $40 million.
Daily Active Users (DAUs) reached 406 million in Q3 2023, a 12% increase year-over-year.
Total time spent watching Spotlight increased over 200% year-over-year.
Snapchat+ reached over 5 million subscribers in Q3 2023.
Revenue increased 5% year-over-year
Revenue by Geographic Location
Forward Guidance
Snap anticipates continued growth in its global community and forecasts DAU to reach 410 million to 412 million in Q4. Due to the unpredictable nature of war, it believes it would be imprudent to provide formal guidance for Q4. The internal forecast assumes a revenue range of $1,320 million to $1,375 million, implying year-over-year revenue growth of approximately 2% to 6%. Within this range of revenue, it estimates that adjusted EBITDA will be between $65 million and $105 million.
Positive Outlook
- Continued growth in global community expected.
- DAU expected to reach 410 million to 412 million.
- Focus on executing against direct-response advertising platform roadmap.
- Anticipates revenue range of $1,320 million to $1,375 million.
- Expects adjusted EBITDA to be between $65 million and $105 million.
Challenges Ahead
- Forward visibility of advertising demand remains limited.
- Q4 revenue is historically backweighted.
- Brand advertising grew at a slower rate than direct-response advertising in Q3.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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