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Snapchat stock5/8/2023 Snap also said it is seeing headwinds from advertisers due to the current supply chain problems, as companies don't want to advertise something they can't get into the hands of customers. The challenge with Apple's new privacy rules, which is the main reason Snap gave for missing on revenue and guidance, should get resolved in the next few quarters as Snap figures out the changes and recovers its targeting capabilities for advertisers. It is never smart to read too much into guidance, but this number was way lower than the average analyst estimate of $1.36 billion, which investors were likely disappointed in seeing. Lastly, Snap gave out guidance for Q4 of $1.17 billion to $1.21 billion. As long as the company keeps growing revenue and expanding its gross margin (which it did last quarter, from 58% to 60%), losing money is not a worry, but it adds another level of risk to Snap stock compared to a profitable social media company like Facebook. However, the net loss was a 64% improvement over the prior year. Snap is not yet profitable, with a net loss of $72 million in Q3. $8.20 in North America, there is likely room to grow its monetization in the segment over time. Plus, with Rest of World ARPU only at $0.98 in Q3 vs. This is important for Snap's future revenue growth, as its application is already pretty saturated in the United States. In Q3, DAUs hit 130 million in the Rest of World segment, up 49% year over year. Snap is quickly growing in its Rest of World users, which is everywhere except North America and Europe. ![]() While 57% is a fast pace for growth, revenue was still less than the $1.1 billion analysts expected in the quarter, which is one reason the stock tanked so much on the news. This led overall revenue to grow 57% year over year to $1.07 billion in the quarter. Daily active users (DAUs) grew 23% year over year to 306 million, while average revenue per user (ARPU) grew 28% to $3.49. On its face, Snap's third-quarter results looked solid.
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