Compared to Estimates, Snap (SNAP) Q3 Earnings: A Look at Key Metrics
For the quarter ended September 2024, Snap (SNAP) reported revenue of $1.37 billion, up 15.5% over the same period last year. EPS came in at $0.08, compared to $0.02 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.35 billion, representing a surprise of +1.36%. The company delivered an EPS surprise of +60.00%, with the consensus EPS estimate being $0.05.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Snap performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Daily Active Users (DAU) - Total Global: 443 million compared to the 441.03 million average estimate based on 10 analysts.
- Average revenue per user (ARPU) - Total Global: $3.10 compared to the $3.08 average estimate based on nine analysts.
- Daily Active Users (DAU) - North America: 100 million versus the seven-analyst average estimate of 100.73 million.
- Daily Active Users (DAU) - Europe: 99 million compared to the 97.94 million average estimate based on seven analysts.
- Daily Active Users (DAU) - Rest of World: 244 million compared to the 242.39 million average estimate based on seven analysts.
- Average revenue per user (ARPU) - Europe: $2.52 versus the seven-analyst average estimate of $2.50.
- Average revenue per user (ARPU) - Rest of World: $1.09 versus $1.02 estimated by seven analysts on average.
- Average revenue per user (ARPU) - North America: $8.54 versus $8.55 estimated by six analysts on average.
- Employees (full-time; excludes part-time, contractors, and temporary personnel): 4.8 billion versus the two-analyst average estimate of 4.75 billion.
- Geographic Revenue- North America: $857.62 million versus the seven-analyst average estimate of $855.49 million. The reported number represents a year-over-year change of +9.1%.
- Geographic Revenue- Rest of World: $266.05 million compared to the $251.60 million average estimate based on seven analysts. The reported number represents a change of +31.6% year over year.
- Geographic Revenue- Europe: $248.90 million versus $247.95 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +24.3% change.
Shares of Snap have returned +0.1% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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