Snap Loss Narrows, But User Base Declines; Shares Down 10%

(RTTNews) - Snap Inc. (SNAP) Thursday reported a narrower loss for the third quarter that also was better than analysts' estimates. However, shares of the company plunged 10 percent in after-hours trade after it reported decline in user base.

California-based Snap reported third-quarter loss of $325.1 million or $0.25 per share, narrower than last year's $443.2 million or $0.36 per share last year.

Adjusted loss for the quarter were $0.12 per share, compared with last year's loss of $0.14 per share. Analysts polled by Thomson Reuters expected the company to report a loss of $0.14 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter surged 43 percent to $297.7 million from $207.9 million in the prior year. Analysts had a consensus revenue estimate of $283.21 million for the quarter.

Snap's daily active users grew to 5 percent to 186 million from 178 million last year. However, users declined increased 1 percent quarter-over-quarter, from 188 million in the second quarter.

Average revenue per user was $1.60 in the third-quarter, an increase of 37 percent year over year.

Looking forward to the fourth quarter, Snap expects revenues of $355 million and $380 million. Analysts currently estimate revenues of $370.96 million.

Snap closed Thursday's trading at $6.99, up $0.40 or 6.07%, on the NYSE. The stock, however, slipped $0.75 or 10.73% in the after-hours trade.