"Total revenue -- $1.72 billion, up 10%, with advertising contributing $1.48 billion, a 5% increase driven by direct response advertising and SMB client segment growth. Other revenue -- $232 million, increasing 62%, supported by 71% subscriber growth to 24 million, with memory storage plans cited as a primary driver for higher retention. Adjusted gross margin -- 59%, rising from 57%, achieving the near-term goal articulated in recent strategic communications."
"Adjusted EBITDA -- $358 million, a year-over-year increase of $82 million, representing a 21% margin and 51% flow-through of revenue growth. Net income -- $45 million, rising from $9 million, primarily attributable to improved EBITDA, partly offset by a $31 million rise in interest expense tied to earlier high-yield note issuances. Free cash flow -- $206 million, with trailing twelve-month free cash flow totaling $437 million, and operating cash flow at $656 million."
"Monthly active users (MAU) -- 946 million, increasing by 3 million sequentially, placing the company near its 1 billion MAU target. Daily active users (DAU) -- 474 million, declining by 3 million sequentially; decline linked to reductions in community growth marketing and regulatory compliance measures, including age verification in Australia. Sponsored Snaps -- Revenue and click-through rates both increased meaningfully quarter over quarter, with click-through purchases up 17%, and click-through rates up 7%, attributed to product and ranking improvements."
Total revenue reached $1.72 billion, a 10% increase, with advertising at $1.48 billion, up 5% driven by direct-response ads and SMB client growth. Other revenue rose 62% to $232 million, supported by 71% subscriber growth to 24 million and higher retention from memory storage plans. Adjusted gross margin improved to 59% from 57%. Adjusted EBITDA was $358 million, up $82 million year over year, a 21% margin with 51% flow-through. Net income increased to $45 million from $9 million, partly offset by a $31 million rise in interest expense. Free cash flow totaled $206 million (TTM $437 million) and operating cash flow was $656 million. MAUs were 946 million and DAUs 474 million; DAU decline reflected reduced community growth marketing and regulatory age-verification in Australia. Sponsored Snaps and advertiser metrics strengthened while eCPMs declined 8% but the rate of decline decelerated.
Read at The Motley Fool
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