"Shares of Snap surged higher after its latest quarterly report. Investors cheered as the social media company continued growing its daily active users at a rapid clip and saw strong improvements in ad performance. Additionally, the parent of Snapchat -- a camera-centric app popular with younger users -- added a new AI (artificial intelligence) partnership that could boost platform engagement and expand monetization avenues down the road."
"Helping drive Snap's growth, Snapchat's daily active users reached 477 million, up 8% from a year ago, and monthly active users climbed to 943 million. All of this led to improved profitability. The company generated $182 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and $93 million in free cash flow, up from $132 million and $72 million, respectively, in the same quarter last year."
Snap's third-quarter revenue rose 10% year over year to $1.51 billion, accelerating from 9% in the prior quarter. Snapchat's daily active users reached 477 million, up 8%, and monthly active users climbed to 943 million. Adjusted EBITDA was $182 million and free cash flow was $93 million, both higher than the prior-year quarter. Direct-response advertising revenue increased 8% year over year, showing a three-point acceleration. Advertising revenue grew strongly outside the U.S., with Europe up 12% and the rest-of-world segment up 13%. An added AI partnership could further boost engagement and monetization, even as shares remain well below prior highs.
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