Third quarter revenue increased by an annual 15 per cent to 1.37 billion U.S. dollars, which was slightly above analysts’ expectations.
But the company still lost some 153 million U.S. dollars.
This was a 58 per cent improvement compared to the nearly 368.3 million U.S. dollars a year ago.
Snap’s business is mainly based on advertising on the Snapchat app.
For the current quarter, which includes the
Christmas season, Snap indicated revenues between 1.51 billion U.S. dollars and 1.56 billion U.S dollars.
Analysts had expected a forecast at the upper end of this range.
Following the announcement of a share buyback amounting to around 500 million U.S. dollars the stock rose by about seven per cent in after-hours trading.
According to Stacy Jo Dixon, a researcher from the United Kingdom, with a background in culture, ethics, social media, and mental health advocacy, Snapchat knows its audience: young, AI hungry, and app happy. Not only does a platform based on fun bode well for parent company Snap Inc., but an affordable subscription fee is also working well. Being the pioneer of Stories, a type of content that lasts just 24 hours, Snapchat defined itself as an innovator, and other major players eventually followed suit. In an online world where social media companies move away from relying solely on advertising, Snapchat has tuned in to what Generation Z want, and market leaders should take heed – this underdog is hot on their heels.
The photo and video app Snapchat continues to gain users with 11 million paid users, but can’t make a profit, figures released showed. Among the latest wave of paid subscription features from social media platforms, Snapchat+ has been the most successful. 
