Shares of Snap jumped as much as 20% during post-market trading as the company posted strong top and bottom line results. In a statement, CEO Evan Spiegel pointed to the "positive growth in Q3" that resulted from the company's considerable cost-cutting efforts. Additionally, Snap announced that its COO, Jerry Hunter, is retiring from the company after seven years there and approved a $500 million stock repurchase program.
Shares of Snap rose as much as 20% in after-hours trading as its earnings and revenue beat expectations. Global Daily Active Users also exceeded expectation of 405.7 million users. Snap reported sales of $1.19 billion for the quarter, 5% higher than the $1.13 billion from the prior year. Its Earnings per Share of 2 cents is lower than the 8 cents per share it reported during the third quarter of 2022.
The company said it is not providing official fourth-quarter guidance "due to the unpredictable nature of war," reversing course from the quarter prior when it had released guidance. It noted that it has observed "pauses in spending from a large number of primarily brand-oriented advertising campaigns immediately following the onset of the war in the Middle East," which is impacting its current quarter's sales.
Snap CEO Evan Spiegel pointed to the company's cost-cutting efforts and "positive growth in Q3" in a statement, while its Snapchat+ subscription service hit five million subscribers in its recent quarter. Snap authorized a stock repurchase program of up to $500 million and had $3.6 billion in cash, cash equivalents and marketable securities as of Sept. 30, 2023. Chief Operating Officer Jerry Hunter is also retiring after seven years at the company.
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