Snap lost 4 cents per share in the third quarter of 2019, the company reported on Tuesday, though that actually may be welcome news to shareholders.
After all, Wall Street forecast a loss of 5 cents per share on revenue of $434.79 million, according to a Yahoo Finance compilation of analysts. Snap did beat its “earnings” (loss) forecast by a penny per share on $446.20 million in revenue.
App Snapchat’s Q3 Daily Active Users (DAUs) were 210 million, topping the 207 million that analysts had expected. The company finished last quarter with 203 million DAUs, and had 186 million at the end of Q3 2018.
“We delivered strong results this quarter, and we are pleased that the investments we have made are continuing to drive the growth of our community and our business,” Snap CEO Evan Spiegel said on Tuesday. “We are a high growth business, with strong operating leverage, a clear path to profitability, a distinct vision for the future, and the ability to invest over the long term. We are excited about executing on the many opportunities in front of us.”
After an ugly 2018 in which a botched app redesign led to a dip in global users, Snap has enjoyed a bounce back year to date. Snap’s stock has increased more than 130% since early January, with Snapchat reporting its best user growth in years last quarter.
Snap entered Tuesday afternoon trading at $14 per share. After the earnings came out, after-hours trading was closer to $13.
The company will hold a call to discuss its Q3 report at 2 p.m. PT.
Snapchat’s rebound comes after it launched a viral gender face-swap filter earlier this year. The company has also doubled down on creating short-form content targeting its millennial and Gen Z users.
Last month, TheWrap learned Snap had renewed three original series, including shows produced by NBCU and MTV, and expanded its E! original series “What the Fashion” to air twice per week.
Snap, unlike Facebook, has largely focused on 3-5 minute shows hinging on influencers, rather than raw star power. There have been signs that might be changing, though, after Snap partnered with Arnold Schwarzenegger and Kevin Hart on two new shows in July.