Snap Inc. (SNAP, Financial) has just unveiled its financial results for Q3 2024, and the numbers are impressive, driving shares up by nearly 15% today. Revenue surged 15% year-over-year to reach $1.37 billion, fueled by a 9% rise in daily active users, now at 443 million. With Snapchat+ subscribers doubling to 12 million and Spotlight averaging 500 million monthly active users—up 21%—CEO Evan Spiegel is clearly steering the ship in the right direction. The company's focus on AI and AR innovations is not just boosting user engagement; it's positioning Snap for significant long-term growth.
In a bold move to enhance shareholder value, Snap's board has authorized a stock repurchase program of up to $500 million in Class A common stock. This program, funded by the company's robust balance sheet—with $3.2 billion in cash and equivalents—will be executed over the next 12 months. Snap aims to offset dilution from employee stock compensation, showing a commitment to fostering an ownership culture. The timing and volume of these buybacks will be smartly aligned with market conditions, allowing Snap to adapt to the evolving landscape.
Looking ahead, Snap is projecting Q4 revenue between $1.51 billion and $1.56 billion, alongside adjusted EBITDA expectations of $210 million to $260 million. However, the company has cautioned that full-year results could come in 4-5% below initial guidance due to rising stock-based compensation expenses. As investors analyze these results and forward guidance, Snap's strategic focus and growth potential may make it a compelling investment opportunity in the tech space.
