On Thursday, October 20, US social media SNAP released its third-quarter results. The financial report shows that SNAP adjusted earnings per share was 8 cents, a small loss or break-even higher than the market expectations. Revenue during the reporting period was US$1.13 billion,

On Thursday, October 20, US social media SNAP released its third quarter results.

financial report shows that SNAP adjusted earnings per share was 8 cents, a small loss or break-even higher than the market expectations. 's revenue during the reporting period was US$1.13 billion, lower than the market's expected US$1.14 billion, with a year-on-year growth rate of only 5.7%, which is the first time since the company went public in 2017, and is lower than the company's own 8% growth rate predicted in August.

region, North America and Europe's revenue was US$810 million and US$160 million, respectively, both lower than market expectations, with growth rates of 3.1% and 5.4% respectively; revenue in other regions increased by 22% year-on-year to US$156 million, slightly higher than market expectations.

Although adjusted profits exceeded market expectations, SNAP's net loss soared 400% to $360 million, partly due to $155 million in restructuring expenses.

Although the number of users still maintains rapid growth, the average revenue per user of (ARPU) fell 11% to $3.11, lower than the average analyst forecast of $3.19.

In addition, SNAP has once again canceled its performance guidance for the next quarter. The company said:

In view of uncertainties related to the operating environment, we did not provide our expectations for revenue or adjusted net profit in the fourth quarter of 2022.

But the company said it has "predicted that the year-on-year revenue growth rate in the fourth quarter will be roughly flat year-on-year." Financial blog Zero Hedge believes that this means that the rapid growth period of SNAP may have ended. After the financial report of

was released, the company's stock price plummeted by nearly 26% after the market closed. The company's stock price has fallen by about 90% since its high at the end of September 2021, and the decline has reached 77% this year.

users maintained rapid growth, with paying users exceeding 1.5 million

In the third quarter, SNAP's global daily active users were 363 million, higher than the market's expectations of 358.2 million, and the year-on-year growth rate reached 19%. This shows that despite business difficulties, the company is still able to attract users to use the service. However, average revenue per user (ARPU) fell 11% to $3.11, down from the analyst average forecast of $3.19.

company said that its $3.99 monthly subscription service launched in June had more than 1.5 million subscribers in the third quarter, and the service has currently covered more than 170 countries and regions around the world.

SNAP CEO Evan Spiegel said:

This quarter, we took action to further focus our business on three strategic priorities: growing our community and deepening user engagement in products, reaccelerating and diversifying our revenue growth, and investing in augmented reality .

He said that user growth “provides long-term opportunities for us in a turbulent macroeconomic environment”.

Affected by the US macroeconomic and Apple's privacy policy, the SNAP advertising business capabilities have declined

Apple 2021 privacy update to the iOS system is still an obstacle to SNAP's ability to track users, thus its Internet advertising business has been weakened. Meta's Facebook and other social media have also been hit by Apple's policy. Next week, Meta and Alphabet will release their latest quarterly reports.

In addition, the increased possibility of a slowdown and recession in the United States has also caused many advertisers to suspend or reduce advertising spending.

In a press release, SNAP said:

We found that our advertising partners in many industries are reducing their marketing budgets, especially in the face of deteriorating operating environment, inflation-driven cost pressures and rising capital costs.

was dragged down by SNAP's financial report that was inferior to market expectations. Meta, which also relied on Internet advertising revenue, fell by about 5% after US stocks, and Alphabet, a parent company of Google , turned down after till trading, with a drop of more than 2%.

SNAP continues to reduce projects in an effort to save money

As part of its cost reduction plan, SNAP said it will close several expensive projects, including the Pixy drone planned to be sold at $230 unit. SNAP also ended the production of its Snap Originals premium show.

As was the case with the second quarter financial report, the SNAP board of directors approved a stock buyback program of up to $500 million. As of the end of the third quarter, the company had $4.4 billion in cash, cash equivalents and securities.

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