>>> Snap beats by $0.01, beats on revs; Adj-EBITDA, DAU exceed guidance; guide

Snap beats by $0.01, beats on revs; Adj-EBITDA, DAU exceed guidance; guides Q4 revs in-line, Adj-EBITDA just below consensus; sees Q4 DAUs of 214-215 mln (14.00 -0.58) Reports Q3 (Sep) loss of $0.04 per share, excluding non-recurring items, $0.01 better than the S&P Capital IQ Consensus of ($0.05); revenues rose 49.9% year/year to $446.2 mln vs the $436 mln S&P Capital IQ Consensus. Adjusted EBITDA improved $96 million to $(42) million in Q3 2019, compared to the prior year and vs. guidance for ($85-60 mln) DAUs were 210 million in Q3 2019, compared to 203 million in Q2 2019 and 186 million in Q3 2018, and vs. guidance for 205-207 mln. Co issues guidance for Q4, sees Q4 revs of $540-560 mln vs. $553.64 mln S&P Capital IQ Consensus, sees Adj-EBITDA of $0-20 mln vs. $21 mln consensus Slide Deck Prepared Remarks Time spent and viewership on our content platform continue to grow rapidly, with more than 100 Discover channels reaching a monthly audience of over 10 million viewers in Q3, and total time spent by Snapchatters watching Discover increasing 40 percent year-over-year. Looking at our business today, there are clear investment areas across short, medium, and long term time horizons that are incremental to our investments in enhancing our core communication platform and growing our community. In the short term, meaning the next 1-3 years, we are focused on scaling our content and augmented reality platforms, making Snapchat content and augmented reality easier to create, easier to monetize, and more personalized. Over the medium term, the next 3-5 years, we will work to further enhance, scale, and monetize our maps and gaming platforms. Looking out over the long term, the next 7-10 years, we will work towards realizing our vision of computing overlaid on the world through wearable augmented reality. We continue to improve our efficiency across our business, and our cloud-based infrastructure has dramatically reduced the need for ongoing capital expenditures, while simultaneously delivering low and declining infrastructure costs on a per user basis. Average revenue per user was $2.12 in Q3, an increase of 33 percent year-over-year, with the highest rate of ARPU growth coming in North America at 43 percent. As we look forward to Q4 we expect to continue to invest in the future of our business, to scale our business efficiently, and to make additional progress towards profitability and positive free cash flow. To begin, I will share with you that our financial guidance assumes DAU of 214 to 215 million in Q4, which implies a sequential increase in DAU of 4 to 5 million.

Snap beats by $0.01, beats on revs; Adj-EBITDA, DAU exceed guidance; guides Q4 revs in-line, Adj-EBITDA just below consensus; sees Q4 DAUs of 214-215 mln (14.00 -0.58)

Reports Q3 (Sep) loss of $0.04 per share, excluding non-recurring items, $0.01 better than the S&P Capital IQ Consensus of ($0.05); revenues rose 49.9% year/year to $446.2 mln vs the $436 mln S&P Capital IQ Consensus.
Adjusted EBITDA improved $96 million to $(42) million in Q3 2019, compared to the prior year and vs. guidance for ($85-60 mln)
DAUs were 210 million in Q3 2019, compared to 203 million in Q2 2019 and 186 million in Q3 2018, and vs. guidance for 205-207 mln.
Co issues guidance for Q4, sees Q4 revs of $540-560 mln vs. $553.64 mln S&P Capital IQ Consensus, sees Adj-EBITDA of $0-20 mln vs. $21 mln consensus
Slide Deck
Prepared Remarks
- Time spent and viewership on our content platform continue to grow rapidly, with more than 100 Discover channels reaching a monthly audience of over 10 million viewers in Q3, and total time spent by Snapchatters watching Discover increasing 40 percent year-over-year.
- Looking at our business today, there are clear investment areas across short, medium, and long term time horizons that are incremental to our investments in enhancing our core communication platform and growing our community. In the short term, meaning the next 1-3 years, we are focused on scaling our content and augmented reality platforms, making Snapchat content and augmented reality easier to create, easier to monetize, and more personalized. Over the medium term, the next 3-5 years, we will work to further enhance, scale, and monetize our maps and gaming platforms. Looking out over the long term, the next 7-10 years, we will work towards realizing our vision of computing overlaid on the world through wearable augmented reality.
- We continue to improve our efficiency across our business, and our cloud-based infrastructure has dramatically reduced the need for ongoing capital expenditures, while simultaneously delivering low and declining infrastructure costs on a per user basis.
- Average revenue per user was $2.12 in Q3, an increase of 33 percent year-over-year, with the highest rate of ARPU growth coming in North America at 43 percent.
- As we look forward to Q4 we expect to continue to invest in the future of our business, to scale our business efficiently, and to make additional progress towards profitability and positive free cash flow. To begin, I will share with you that our financial guidance assumes DAU of 214 to 215 million in Q4, which implies a sequential increase in DAU of 4 to 5 million.