People are Discover-ing Snap.
The social network/camera company touting its Discover Channel as an outlet for growth released its earnings Tuesday in another dose of good news/bad news for the company.
The good news that the company behind Snapchat saw user growth boom up to 7 million daily active users during the third quarter and now has 210 million total daily active users – surpassing Wall Street’s expectations of a 3 million increase. In addition, Snap brought in $446 million in revenue for the quarter, up 50 percent from the year-ago period.
But the stock was down nearly 4 percent in after-hours trading when the company issued a disappointing revenue forecast for the fourth quarter.
Still, Snap touted its Daily Discover content announcing that viewing time increased 40 percent compared to last year at this time. In addition, its original horror-thriller “Dead of Night” reached more than 14 million unique viewers since its premiere in September.
For advertisers, Snapchat recently launched a new 'Dynamic Ads' option which creates Snap ads for you based on individual choices. According to Snap, “Dynamic Ads now brings automated personalization to the platform, opening new ways to scale and drive impact very easily."
CEO Evan Spiegel, who co-founded Snap in 2011, said in an investor letter that the company is on a path to profitability by the fourth quarter.
The company's stock price has bounced back from the $5 range last winter -- nearly tripling during 2019.