Snap (SNAP) Plummeted 24% Following Q3 Results; Q4 Guidance Miss
Snap (NYSE: SNAP) shares were trading around 24% lower after-hours following the company’s Q3 results, which included a miss on the top-line in the current quarter and a warning about future performance amid headwinds. The social media platform blamed changes to the iOS platform, global supply chain issues, and labor shortages.
Quarterly EPS came in at $0.17, beating the Street estimate of $0.08, and revenue came in at $1.07 billion (up 57% year-over-year), slightly below the consensus estimate of $1.1 billion.
The company’s daily active users (DAU) in Q3 were 306 million, growing 23% year-over-year.
According to Evan Spiegel, the CEO of Snap, the company is now operating at scale to navigate significant headwinds, including iOS platform changes that affect the way ads are targeted, measured, and optimized, as well as global supply chain issues and labor shortages that affect the company’s partners.
The company provided its Q4 outlook, expecting revenue to range from $1.17. to 1.21 billion, which is lower than the Street estimate of $1.36 billion.
With shares up 50% year-to-date there was little room for error.