Snap announces third quarter 2023 revenue up 5%, $368 million loss
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Snap Inc. announced third-quarter revenues were up 5%, while daily active users were up 12% to 406 million, but the company still lost $368 million. The company’s net loss was $360 million for the same period last year. Revenue was $1,189 million, compared to $1,128 million in the prior year, an increase of 5% year-over-year.
“Our revenue returned to positive growth in Q3, increasing 5% year-over-year and flowing through to positive adjusted EBITDA as our reprioritized cost structure demonstrated the leverage in our business model,” said Evan Spiegel, CEO. “We are focused on improving our advertising platform to drive higher return on investment for our advertising partners, and we have evolved our go-to-market efforts to better serve our partners and drive customer success.”
Jerry Hunter, Chief Operating Officer, has notified Snap that he will retire. Hunter joined Snap seven years ago and served an important role in building the company’s engineering and business structures. His duties and responsibilities will be transitioned by the end of the month and he will continue to support Snap through July 1, 2024, to help ensure this transition is effective.
“I am deeply grateful to Jerry for the meaningful contributions he has made over his many years at Snap,” said Spiegel. “His work to improve our advertising platform, serve our community, and build a strong team has helped lay the foundation for our future growth.”
Snap Inc. also announced today its board of directors has authorized a stock repurchase program of up to $500 million of its Class A common stock. Repurchases of the Class A common stock may be made from time to time, either through open market transactions (including through Rule 10b5-1 trading plans) or through privately negotiated transactions in accordance with applicable securities laws. The timing and actual number of shares repurchased will depend on a variety of factors, including stock price, trading volume, market and economic conditions, and other general business considerations. Repurchases under the program have been authorized for 12 months but the program may be modified, suspended, or terminated at any time.
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Three Months Ended |
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Percent |
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Nine Months Ended |
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Percent |
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2023 |
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2022 |
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2023 |
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2022 |
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(Unaudited) |
(in thousands, except per share amounts) |
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Revenue |
$ |
1,188,551 |
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|
$ |
1,128,476 |
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|
5 |
% |
|
$ |
3,244,828 |
|
|
$ |
3,302,112 |
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(2 |
)% |
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Operating loss |
$ |
(380,063 |
) |
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$ |
(435,242 |
) |
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13 |
% |
|
$ |
(1,149,666 |
) |
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$ |
(1,107,709 |
) |
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(4 |
)% |
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Net loss |
$ |
(368,256 |
) |
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$ |
(359,502 |
) |
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(2 |
)% |
|
$ |
(1,074,238 |
) |
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$ |
(1,141,193 |
) |
|
6 |
% |
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Adjusted EBITDA(1) |
$ |
40,094 |
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|
$ |
72,640 |
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(45 |
)% |
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$ |
2,428 |
|
|
$ |
144,298 |
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(98 |
)% |
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Net cash provided by (used in) operating activities |
$ |
12,781 |
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|
$ |
55,945 |
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|
(77 |
)% |
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$ |
81,947 |
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|
$ |
59,323 |
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|
38 |
% |
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Free Cash Flow(2) |
$ |
(60,654 |
) |
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$ |
18,109 |
|
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(435 |
)% |
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$ |
(76,061 |
) |
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$ |
(23,058 |
) |
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(230 |
)% |
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Diluted net loss per share attributable to common stockholders |
$ |
(0.23 |
) |
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$ |
(0.22 |
) |
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(5 |
)% |
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$ |
(0.67 |
) |
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$ |
(0.70 |
) |
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4 |
% |
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Non-GAAP diluted net income (loss) per share(3) |
$ |
0.02 |
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|
$ |
0.08 |
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(75 |
)% |
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$ |
0.01 |
|
|
$ |
0.04 |
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(75 |
)% |
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(1) |
See page 10 for reconciliation of net loss to Adjusted EBITDA. In the third quarter of 2023, we initiated a wind down of our AR Enterprise business, which included a reduction of our global employee headcount by approximately 3%. Restructuring charges in the third quarter of 2023 were $18.6 million, composed primarily of cash severance and stock-based compensation expenses. In the third quarter of 2022, we initiated a strategic reprioritization plan, which included a reduction of our global employee headcount by approximately 20%. Restructuring charges in the third quarter of 2022 were $154.6 million, composed primarily of severance and related charges, stock-based compensation expense, lease exit and related charges, impairment charges, and contract termination charges. |
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(2) |
See page 10 for reconciliation of net cash provided by (used in) operating activities to Free Cash Flow. |
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(3) |
See page 11 for reconciliation of diluted net loss per share to non-GAAP diluted net income (loss) per share. |