Snap Q3 Earnings: Revenue Beat, Stock Buyback And COO Retirement

Snap Inc. SNAP shares are volatile in Tuesday's after-hours session after the company reported better-than-expected third-quarter financial results and announced a $500 million buyback program.

What To Know: Snap reported quarterly earnings of two cents per share, which beat the analyst consensus estimate of losses of four cents, a 75% decrease over earnings of eight cents per share from last year. 

The company reported quarterly sales of $1.19 billion, which beat the analyst consensus estimate of $1.11 billion, a 5.41% increase over sales of $1.13 billion in the same period last year.

Daily active users (DAU) increased 12% year-over-year to 406 million.

While Snap stated it would be "imprudent" to provide formal fourth-quarter guidance, due to the chaos and uncertainty stemming from war in the Middle East, the company said that its outlook for the fourth-quarter is built on the assumption that DAU will reach 410 million to 412 million.

In addition to announcing a $500 million stock buyback program, the company also announced that its COO Jerry Hunter will retire.

"Our revenue returned to positive growth in Q3, increasing 5% year-over-year and flowing through to positive adjusted EBITDA as our reprioritized cost structure demonstrated the leverage in our business model," said Evan Spiegel, CEO. 

"We are focused on improving our advertising platform to drive higher return on investment for our advertising partners, and we have evolved our go-to-market efforts to better serve our partners and drive customer success."

Related Link: From Growth Targets To Headcount Cuts, Analyst Reviews Snap's Roadmap To 2024

SNAP Price Action: Shares of SNAP were down 4.12% at $9.31 in the after-hours session at the time of publication, according to Benzinga Pro.