Snap (NYSE:SNAP) shares bounced soon after Wednesday’s open on reported better-than-expected third-quarter results from Tuesday but issued light fourth-quarter guidance.
Sales jumped 15% from a year earlier in the third quarter, while Snap’s net loss narrowed to $153 million from $368 million a year prior.
Fourth-quarter sales will be between $1.51 billion and $1.56 billion. The midpoint of its guidance is $1.54 billion, which is below the average analyst estimate of $1.56 billion. Snap said its adjusted earnings for the fourth quarter will be between $210 million and $260 million. The middle of the range is higher than analysts’ estimates of $230.7 million.
Snap also announced a $500-million stock repurchase program.
The number of Snapchat+ paying subscribers is now at 12 million, the company said. That is up from the 11 million it reported in August. The company debuted its subscription service in 2022, pitching it as a way for users to experience exclusive and prerelease features for $3.99 a month.
“Our investments in AI and AR are powering new creative experiences for our community and driving innovation across our advertising platform, underpinning our long term growth opportunity,” Snap CEO Evan Spiegel said in a statement.
SNAP shares hiked $1.62, or 14.9%, to $12.51.
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