NYSE$SNAP

Snapchat Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Snapchat's revenue returned to positive growth, increasing 5% year-over-year, with positive adjusted EBITDA achieved through a reprioritized cost structure.

Snap Inc. announced its Q3 2023 financial results, with revenue increasing 5% year-over-year to $1,189 million and daily active users (DAU) growing 12% year-over-year to 406 million. The company reported a net loss of $368 million, while adjusted EBITDA was positive at $40 million.

  • Daily Active Users (DAUs) reached 406 million in Q3 2023, a 12% increase year-over-year.
  • Total time spent watching Spotlight increased over 200% year-over-year.
  • Snapchat+ reached over 5 million subscribers in Q3 2023.
  • Revenue increased 5% year-over-year

Headline financials

Total Revenue

$1.19B

Previous: $1.13B+5.3%
EPS (adj)

$0.02

Previous: $0.08-75.0%
Global DAU

406.0M

Previous: 363.0M+11.8%
Global ARPU

$2.93

Previous: $3.11-5.8%
Capital Expenditures

-$73.4M

Previous: -$37.8M-94.1%
Free Cash Flow

-$442M

Previous: -$397M-11.2%
Net Income

-$368M

Previous: -$360M-2.4%
Operating Income

-$380M

Previous: -$435M+12.7%
Gross Profit

$633M

Previous: $662M-4.4%
Cash & Equivalents

$1.2B

Previous: $1.92B-37.5%
Total Assets

$7.72B

Previous: $8.29B-6.8%
Stock-Based Comp

$358M

Previous: $343M+4.4%

Revenue & EPS history

Snapchat · Revenue · Quarterly

$1.19B

Q3 2023+5.3%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Snap anticipates continued growth in its global community and forecasts DAU to reach 410 million to 412 million in Q4. Due to the unpredictable nature of war, it believes it would be imprudent to provide formal guidance for Q4. The internal forecast assumes a revenue range of $1,320 million to $1,375 million, implying year-over-year revenue growth of approximately 2% to 6%. Within this range of revenue, it estimates that adjusted EBITDA will be between $65 million and $105 million.

Tailwinds

  • Continued growth in global community expected.
  • DAU expected to reach 410 million to 412 million.
  • Focus on executing against direct-response advertising platform roadmap.
  • Anticipates revenue range of $1,320 million to $1,375 million.
  • Expects adjusted EBITDA to be between $65 million and $105 million.

Headwinds

  • Forward visibility of advertising demand remains limited.
  • Q4 revenue is historically backweighted.
  • Brand advertising grew at a slower rate than direct-response advertising in Q3.
  • Observed pauses in spending from brand-oriented advertising campaigns due to war in the Middle East.
  • Risk that pauses in advertising spending could persist or increase in magnitude.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-3.8%

Avg return

Earnings day

-2.0%

Avg return

5 days after

-2.6%

Avg return

30 days after

29%

12 / 41 earnings

Positive

+49.8%

Q4 2017

Best reaction

-35.8%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%-9.5%-5.9%
Q4 2025-13.4%-11.5%-12.7%
Q3 2025-12.3%+20.0%+8.4%
Q1 2025-12.4%-5.9%-9.2%
Q4 2024-8.4%-7.7%-16.2%
Q3 2024+17.8%+17.0%+8.4%
Q2 2024-29.7%-35.1%-29.9%
Q1 2024+31.3%+35.8%+37.4%
Q4 2023-31.9%-33.7%-29.3%
Q3 2023-3.2%-2.0%+29.7%
Q2 2023-15.4%-15.8%-26.1%
Q1 2023-11.8%-15.9%+4.0%
Q4 2022-6.5%-0.8%-8.9%
Q3 2022-28.5%-11.6%-3.1%
Q2 2022-35.8%-37.9%-25.5%
Q1 2022-3.3%-6.7%-24.4%
Q4 2021+21.3%+17.1%+3.2%
Q3 2021-27.1%-26.8%-32.2%
Q2 2021+23.0%+16.7%+14.7%
Q1 2021+5.1%+3.8%-2.9%
Q4 2020+7.4%+6.0%-3.1%
Q3 2020+27.4%+50.6%+47.6%
Q2 2020-8.2%-12.3%-13.6%
Q1 2020+31.7%+23.8%+35.8%
Q4 2019-11.2%-6.0%-24.0%
Q3 2019-9.6%-4.3%+3.4%
Q2 2019+24.5%+26.4%+13.6%
Q1 2019-2.3%-5.4%-3.6%
Q4 2018+24.0%+31.3%+36.9%
Q3 2018-4.7%-2.4%-5.9%
Q2 2018-6.3%-5.7%-24.9%
Q1 2018-23.0%-24.7%-20.5%
Q4 2015-6.4%-12.4%-12.2%
Q4 2017+49.8%+35.7%+27.4%
Q3 2016-18.1%-18.0%-0.3%
Q3 2017-12.9%-14.0%-0.9%
Q2 2016-8.5%-4.7%+11.4%
Q2 2017-12.8%-6.0%+13.1%
Q4 2016-16.7%-9.6%-21.3%
Q1 2016-16.7%-9.6%-21.3%
Q1 2017-22.6%-11.1%-22.5%
Q3 2015
Q2 2015
Q1 2015

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