Revenue for the third quarter ended September rose 5% to US$1.19bil, beating analysts’ expectations of US$1.11bil, according to LSEG data. — Reuters
NEW YORK: Photo messaging app Snap reported a surprise rise in quarterly revenue and forecast an upbeat current quarter as its efforts to bolster ad-targeting tools with artificial intelligence shows signs of paying off.
Revenue for the third quarter ended September rose 5% to US$1.19bil, beating analysts’ expectations of US$1.11bil, according to LSEG data.
Snap shares, however, seesawed in extended trading after rising as much as 14% following the results as some analysts expressed doubts about the company’s ability to hold its own in the face of tough competition from bigger rivals, including Meta.
While the company has returned to growth, concerns on whether it can go back to double-digit growth remains, Third Bridge analyst Scott Kesler said.
For the fourth quarter, the Santa Monica, California-based company expects revenue to be between US$1.32bil and US$1.38bil. Analysts were expecting revenue of US$1.33bil.
Snap, however, said it saw a risk to its sales in the fourth quarter as a war in the Middle East could tamp down spending from a large number of brand-oriented advertising campaigns. — Reuters
