TLDR:
- Snap’s Q3 2024 revenue increased 15% to $1.37 billion with daily active users up 9% to 443 million
- Company announced $500 million stock buyback program
- Stock jumped approximately 15% following earnings report
- Snapchat+ subscribers doubled to 12 million users
- Despite growth, eCPM dropped 7% year-over-year due to inventory exceeding advertiser demand
Snap Inc. shares climbed 15% on Wednesday following the release of its third-quarter 2024 financial results, which showed steady growth in both revenue and user base. The social media company reported revenue of $1.37 billion, representing a 15% increase compared to the same period last year.
The company’s daily active users reached 443 million, marking a 9% rise from the third quarter of 2023. User engagement also showed strength, with time spent watching content increasing by 25% year-over-year. Average revenue per user grew by 6%, contributing to the overall revenue expansion.

Snap’s premium subscription service, Snapchat+, demonstrated strong momentum by doubling its subscriber base to 12 million users. The platform’s Spotlight feature averaged 500 million monthly active users, showing a 21% increase from the previous year.
Competition from Reddit
The competition between Snap and Reddit intensified today as both companies reported strong quarterly results.
While Snap saw its stock rise 15%, Reddit’s shares surged even more dramatically, jumping 40% after announcing its first profitable quarter since going public. Reddit reported net income of $29.9 million ($0.16 per share) on revenue of $348.4 million, marking a 68% year-over-year increase in revenue.

Reddit’s daily active users grew 47% to 97.2 million, though this remains below Snap’s 443 million daily active users. Reddit’s advertising revenue increased 56% to $315 million, while its content licensing deals with companies like Google and OpenAI generated $33.2 million, a 547% increase in the “other revenue” category.
Both platforms showed improved financial health in Q3. While Snap reduced its net loss and generated $72 million in free cash flow, Reddit achieved profitability and reported $70.3 million in free cash flow. Reddit’s Q4 guidance projects revenue between $385 million and $400 million, while Snap expects Q4 revenue between $1.51 billion and $1.56 billion.
Stock Buyback
In a move to enhance shareholder value, Snap’s board of directors authorized a stock repurchase program of up to $500 million in Class A common stock. The company plans to execute this program over the next 12 months, using its available cash reserves of $3.2 billion.
The financial results showed mixed signals in certain areas. While the company reduced its net loss to $153 million from $368 million in the prior year, it still operates at a loss. However, Snap generated positive free cash flow of $72 million, an improvement from negative $61 million in the same quarter last year.
Looking ahead to the fourth quarter, Snap projects revenue between $1.51 billion and $1.56 billion. The company expects adjusted EBITDA to range from $210 million to $260 million. Management has indicated that full-year results might come in 4-5% below initial guidance due to increased stock-based compensation expenses.
Advertising metrics showed some challenges, with effective cost per mille (eCPM) dropping 7% year-over-year. This decline was attributed to advertising inventory growing faster than advertiser demand, indicating potential monetization challenges.
Currently trading at $12.77 per share, Snap stock remains 26.8% below its 52-week high of $17.45 reached in February 2024. The company has experienced a 20.9% decline since the beginning of the year.
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