Snapchat Grows to 210 Million Daily Users, Surpasses Q3 Revenue Expectations

Snapchat is growing again, and getting better at monetizing all those eyeballs: The service ended its fiscal third quarter of 2019 with 210 million daily active users, compared with 203 million at the end of Q2, its corporate parent Snap Inc. revealed as part of its earnings release Tuesday afternoon.

Snap generated some $446 million revenue in Q3, compared with $297.7 million in Q3 of 2018. Analysts had expected $435 million in revenue for the most recent quarter.

“We delivered strong results this quarter, and we are pleased that the investments we have made are continuing to drive the growth of our community and our business,” said Snap CEO Evan Spiegel in a statement. “We are a high-growth business, with strong operating  leverage, a clear path to profitability, a distinct vision for the future, and the ability to invest over the long term. We are excited about executing on the many opportunities in front of us.”

However, while Spiegel may be talking up a path to profitability, Snap is still losing a lot of money to sustain its growth: The company’s losses for the quarter came in at $227 million, compared with $325 million a year ago. Q3 2019 results translated to losses of 16 cents per share.

Popular on Variety

Continued losses also seemed to be on the minds of investors, with Snap’s share price declining by as much as 5% in after-hours trading Tuesday, only to stabilize around 2% down following the earnings call.

Snapchat specifically called out its Discover content distribution platform as a growth engine, declaring that time spent by Snapchat users watching Discover content had grown 40% year-over-year. In the third quarter, over 100 Discover channels reached a monthly audience of 10 million or more viewers, according to the company.

In prepared remarks for Tuesday’s earnings call, Spiegel painted the traction that professional content is seeing on Snapchat as part of a broader movement of audiences away from traditional TV and toward mobile screens. “We believe that this shift in behavior towards mobile content has created a large opportunity for our business, and we are excited about investing more to scale our content platform,” he said.

Interestingly, Snap didn’t provide any success metrics for its nascent gaming business that launched in April of this year. Instead, Spiegel seemed to temper expectations, telling investors that gaming would be a medium-term opportunity that may come more into focus over the next 3-5 years.

Spiegel also reiterated the company’s interest in augmented reality (AR) beyond the phone, but cautioned that AR headsets may take some time to arrive. “Over the long term, the next 7-10 years, we will work towards realizing our vision of computing overlaid on the world through wearable augmented reality,” he said.

Snap continues to iterate on Spectacles as a precursor to full-blown AR glasses, but Spiegel made it clear on Tuesday that the product is little more than an experiment for the company. “We are building low volumes of Spectacles 3 and using this iteration to test and learn more about wearable computing,” he said.

More Digital

  • 100 Thieves

    Esports Organization 100 Thieves Unveils New Facility in Los Angeles

    As of Wednesday, popular esports organization 100 Thieves has an official home in Los Angeles. The group unveiled its new 15,000 square-foot facility, officially named the 100 Thieves Cash App Compound, in a media preview with some of its biggest personalities and investor Scooter Braun on hand. Also in attendance was Jack Dorsey, the CEO [...]

  • Amazon Music

    Amazon Music Tops 55 Million Users, Still Playing Catch-Up to Spotify and Apple

    Amazon is famously reluctant to release specific numbers about its users, so it’s notable that the e-retailing giant announced that it has surpassed 55 million customers worldwide for Amazon Music. The company didn’t reveal how many of those users are on its various pricing tiers, but said subscriptions to Amazon Music Unlimited grew by more [...]

  • The Crown Season 3 Oliva Colman

    Record Intl. Growth Sees Netflix Beat Q4 Earnings Forecast

    Fast growth in international markets, contrasting with only sluggish subscriber gains in North America, was a major factor behind streaming giant Netflix’s better than forecast growth in the last quarter of 2019. The company is set on keeping up that international momentum. Globally Netflix added 8.76 million new customers in the three months to December [...]

  • TikTok - LA lobby

    TikTok Opens New L.A. Office in Culver City

    TikTok, in a signal of the short-form video app’s growing clout and entertainment ambitions, announced the company’s Los Angeles operations have moved into a new 120,000-square-foot office in Culver City, Calif. TikTok’s new office space occupies five floors at the C3 campus at 5800 Bristol Parkway in Culver City. According to the company, the space [...]

  • SiriusXM president and CCO Scott Greenstein

    SiriusXM's Scott Greenstein Named Music Visionary of the Year by UJA-Federation

    SiriusXM president and chief content officer Scott Greenstein will be honored by the UJA-Federation of New York as its Music Visionary of the Year on June 4 in New York City. The award recognizes exceptional professional accomplishments and commitment to philanthropy. Previous recipients have included Sony Music Group CEO Rob Stringer, Republic Records co-founders Avery [...]

  • Anjelah Johnson'The Curse of La Llorona'

    HA Comedy Festival Sets Lineup, HBO Max Comedy Special

    The newly launched HA comedy festival backed by WarnerMedia and New Cadence Productions has set its dates, talent lineup and plans for a special to air on HBO Max. The festival, to be held Feb. 21-23 in San Antonio, Texas, is designed as a showcase for Latinx comedians. It’s part of a first-look development pact [...]

  • Marvel-Strike-Force-FoxNext

    Disney Sells FoxNext Games Unit to Scopely

    Disney has sold off FoxNext Games, the studio it obtained through the purchase of 20th Century Fox, to mobile-games developer Scopely. Terms of the pact were not disclosed. Under the terms of the pact, Scopely is acquiring FoxNext Games Los Angeles, the game studio behind hit game “Marvel Strike Force,” and San Jose-based Cold Iron [...]

More From Our Brands

Access exclusive content