Snap Falls Over 10% Despite Adjusted Earnings Beat — SkimNews
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- Snap shares sank over 10% after third-quarter revenue reached $1.72 billion versus LSEG’s $1.73 billion estimate and global daily active users hit 495 million versus StreetAccount’s 499 million forecast; ARPU matched expectations at $3.48.
- Snap reported third-quarter sales up 14% year over year and net income of $56 million, versus a $104 million net loss in the prior year.
- Snap posted adjusted earnings of $383 million, exceeding StreetAccount’s $337 million analyst projection by $46 million.
- Snap guided fourth-quarter revenue to $1.95 billion–$1.99 billion, putting the midpoint above Wall Street’s $1.95 billion estimate, and projected adjusted earnings of $490 million–$525 million against a $498 million expectation.
- Snap ended the quarter with 977 million globally monthly active users and said it will make MAU its primary audience metric starting in the first quarter of 2027.
- Snap said daily engagement has historically been stable as a percentage of monthly engagement and that it will not optimize Snapchat around daily use at the expense of long-term community value.
Why it matters: The market penalized Snap for a $10 million revenue shortfall and 4 million-user miss, while the $46 million adjusted earnings beat and Q4 revenue midpoint above Wall Street’s $1.95 billion estimate show the report was mixed rather than uniformly weak. From Q1 2027, the 977 million monthly-user base becomes Snap’s primary audience measure, formalizing a shift away from daily-user comparisons.
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