Snap reported another quarter of stronger-than-forecast results, though its free cash flow turned back to negative, after running positive in the first quarter. CEO Evan Spiegel said the growth rates for both revenue and daily active users were the highest in four years, and that the company was pleased with its progress it was making on the development of its augmented reality platform.
Revenues for the quarter rose 116 percent from the year earlier to USD 982 million. The net loss reduced by 53 percent to USD 152 million while the adjusted EBITDA loss improved by 223 percent to USD 117 million. The operating cash flow went to a negative USD 101 million after reaching a positive 137 million in the previous quarter, compared to a negative 67 million the year before. The free cash flow went to a negative USD 116 million from a positive 126 million in Q2, a
Snapchat had 293 million daily active users in the quarter, compared to 280 million in Q1 and up by 55 million or 23 percent year-on-year. The company said it increased both sequentially and year-over-year in North America, Europe and Rest of World. Daily active users also went up sequentially and year-on-year on iOS and Android platforms.
For the third quarter, Snap sees revenues passing the billion-dollar mark, rising 58-60 percent to USD 1.070-1.085 billion, from 679 million the year earlier. The adjusted EBITDA is expected to almost double, to USD 100-120 million from 56 million the year before.
