Snapchat has seen a surge in its daily active users, gaining 11 million new users globally in the past three months. This growth brings the app’s total user count to 443 million, reflecting a 9% increase.
However, the platform has hit a plateau in the U.S., where its user base remains at 100 million.
Despite the increase in users, Snap, the parent company of Snapchat, is facing difficulties in translating this growth into profitability.
In its latest financial report, the company announced a revenue increase of 15% year-over-year, totaling $1.37 billion for the third quarter.
This figure slightly exceeded analysts’ expectations, but Snap still recorded a loss of $153 million.
While this is an improvement from last year’s loss of $368.3 million during the same period, concerns about profitability persist.
The majority of Snap’s income derives from advertising on the Snapchat platform.
Looking ahead, the company projects revenues for the upcoming quarter to be between $1.51 billion and $1.56 billion, which aligns with analysts’ forecasts for the holiday season.
Following the announcement of a $500 million share buyback plan, Snap’s stock saw a rise of approximately 7% in after-hours trading.
