On October 24, 2023, Snap Inc (SNAP, Financial) released its financial results for the third quarter of 2023. The company reported a 5% year-over-year increase in revenue to $1,189 million and a 12% year-over-year increase in Daily Active Users to 406 million. However, the company also reported a net loss of $368 million.
Financial Highlights
The company's revenue for Q3 2023 was $1,189 million, a 5% increase compared to $1,128 million in the prior year. The net loss for the quarter was $368 million, compared to a net loss of $360 million in the prior year. Adjusted EBITDA was $40 million, compared to $73 million in the prior year. Operating cash flow was $13 million, compared to $56 million in the prior year. Free Cash Flow was $(61) million, compared to $18 million in the prior year.
Key Developments
CEO Evan Spiegel noted the return to positive revenue growth in Q3 and the positive adjusted EBITDA, attributing these to the company's reprioritized cost structure. The company is focusing on improving its advertising platform to drive higher return on investment for its advertising partners.
Chief Operating Officer Jerry Hunter announced his retirement, with his duties and responsibilities to be transitioned by the end of the month. He will continue to support Snap through July 1, 2024.
The company also announced that its board of directors has authorized a stock repurchase program of up to $500 million of its Class A common stock. The goal of the program is to utilize the company’s strong balance sheet to offset a portion of the dilution related to the issuance of restricted stock units to employees.
Outlook
As Snap Inc (SNAP, Financial) enters Q4, it anticipates continued growth in its global community. The company's 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, the company estimates that adjusted EBITDA will be between $65 million and $105 million.
