SNAP stock was trading at $7.51 as of 10:30 AM EDT.
After reporting third-quarter earnings, Snap stock (NYSE:SNAP) has dropped more than 25%. The company said it made more money than expected and could repurchase up to $500 million worth of stock. However, sales did not grow by 6.4% as expected, and the company decided not to give Q4 projections. Revenues increased by 6% to $1.13 billion, missing some lower Wall Street projections and setting a record-low growth rate for the company.
The corporation also outperformed expectations for user growth, with 363 million daily active users, up 19%. (vs. consensus for 358.7 million). The amount increased both sequentially and annually in all of Snap’s territories (North America, Europe, and the Rest of the World).
Report to Impact Snap Stock
The net loss went from $72 million to $360 million because of a restructuring charge of $155 million, while the adjusted profits before interest, taxes, depreciation, and amortization went from $174 million to $73 million. Operating cash flow decreased from $72 million to $56 million, while free cash flow decreased from $52 million to $18 million.
Other operational metrics showed a 55% increase in overall Spotlight viewing time as well as a more than 40% year-over-year increase in the daily average time spent by Snapchatters 35 and older watching shows and publisher content.
A program to buy back up to $500 million worth of stock was approved by the board to help make up for some of the loss of value that came from giving restricted stock units to employees. As of in-class A common stock. On September 30, Snap had $4.44.4 billion in available cash.
Due to operational uncertainty, the company said that it would not predict sales or adjusted EBITDA for the fourth quarter of 2022. The conference call for Snap (NYSE:SNAP) will now start at 5:30 p.m. ET.
Featured Image- Megapixl @ Frui
Author Faith Yakubu 
