Snap beats outlook in Q3, sees EBITDA turning breakeven in Q4

News Wireless Global 23 OCT 2019
Snap beats outlook in Q3, sees EBITDA turning breakeven in Q4

Snap reported better-than-expected results for the third quarter. The number of active daily users increased by 7 million, and revenues were up 50 percent year-on-year to USD 446 million. Adjusted EBITDA improved to a loss of USD 42 million from a loss of USD 138 million a year ago, and Snap said it expects to reach at least breakeven in Q4.

The bottom line remained in the red, at a net loss of USD 227 million, while the cash outflow improved by USD 75 million to USD 84 million. 

Customer growth for the Snapchat app was mainly in India and other emerging markets. In the US and Europe, Snap added 1 million new users in the quarter. In total, the company ended September with 210 million daily users, up from 186 million a year ago. 

The company also reported increased time spent on the app, thanks to its video function Discover. Snap said over 100 Discover channels already have more than 10 million viewers each month. 

For the fourth quarter, the company forecast revenues of USD 540-560 million, up from USD 390 million a year ago. Adjusted EBITDA is expected at breakeven to USD 20 million, versus a loss of USD 50 million in Q4 2018. 

Categories:

Mobile

Companies:

Snap,  Snapchat

Regions:

Global

Tags:

Messaging, Financial figures, IT - applications, Finance, Advertising services

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