Q3 2024 Snap Inc Earnings Call Transcript
Key Points
- Snap Inc (SNAP) reported a 15% year-over-year increase in total revenue, reaching $1.37 billion in Q3 2024.
- Daily active users grew by 37 million year-over-year, reaching 443 million in Q3 2024.
- The company saw significant growth in its direct response advertising business, with total active advertisers more than doubling year-over-year.
- Snapchat+ subscription revenue more than doubled year-over-year, contributing to the diversification of Snap Inc (SNAP)'s revenue sources.
- Snap Inc (SNAP) achieved $132 million in adjusted EBITDA and $72 million in free cash flow, indicating improved financial performance and operational efficiency.
- Brand-oriented advertising revenue declined by 1% year-over-year, reflecting weak demand from certain consumer discretionary verticals.
- The rollout of Simple Snapchat poses potential risks of disruption to user engagement and monetization, requiring careful testing and iteration.
- Infrastructure costs increased due to investments in machine learning and AI, impacting overall cost structure.
- Total eCPMs decreased by approximately 7% year-over-year as inventory growth outpaced advertising demand.
- The company faces challenges in reaccelerating upper funnel brand revenue growth, with no significant recovery expected in the near term.
Good afternoon, everyone, and welcome to Snap Inc.'s Third Quarter 2024 Earnings Conference Call. (Operator Instructions) I would now like to turn the call over to David Ometer, Head of Investor Relations.
Thank you, and good afternoon, everyone. Welcome to Snap's Third Quarter 2024 Earnings Conference Call. With us today are Evan Spiegel, Chief Executive Officer and Co-Founder; and Derek Andersen, Chief Financial Officer.
Please refer to our Investor Relations website at investor.snap.com to find today's press release, earnings slides and investor letter. This conference call includes forward-looking statements, which are based on our assumptions of today. Actual results may differ materially from those expressed in these forward-looking statements, and we make no obligation to update our disclosures. For more information about factors that may cause actual results to differ materially from these forward-looking statements, please refer to the press release we issued today as well as risks described
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