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Free Research Report as Snap’s Growth in Subscribers Base Failed to Boost Q3 Bottom-Line

Stock Monitor: Renren Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 19, 2017 / Active-Investors free earnings report on Snap Inc. (NYSE: SNAP) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=SNAP. The Company posted its financial results on November 07, 2017, for the third quarter of the fiscal year 2017. The Venice, California-based Company's total revenues and adjusted EBITDA surged 62% and 65% y-o-y, respectively. Register today and get free access to our complimentary member's area where many more reports are available:


Active-Investors.com is currently working on the research report for Renren Inc. (NYSE: RENN), which also belongs to the Technology sector as the Company Snap Inc. Do not miss out and become a member today for free to access this upcoming report at:


Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Snap most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:


Earnings Highlights and Summary

During Q3 FY17, Snap reported total revenues of $207.94 million, which came in above the $128.20 million recorded at the end of Q3 FY16. However, the Company's total revenue numbers missed Wall Street's expectations of $233.1 million.

The social media Company posted a net loss of $443.16 million, or $0.36 loss per diluted common share, in Q3 FY17 compared to a net loss of $124.23 million, or $0.15 loss per diluted common share, in the prior year's same quarter. In the reported quarter, the Company's non-GAAP net loss widened to $168.08 million, or $0.14 loss per diluted share, from $104.83 million, or $0.13 loss per diluted share, in Q3 FY16, meeting market analysts' expectations for an adjusted net loss of $0.14 per diluted share.

Operating Metrics

For Q3 FY17, Snap's cost of revenue came in at $210.71 million versus $127.78 million in the year ago comparable period. The Company spent $239.44 million on research and development (R&D), and $101.51 million on sales and marketing (S&M) in Q3 FY17, up from $54.56 million on R&D, and $34.66 million on S&M in Q3 FY16. The Company's general and administrative (G&A) expenses also increased to $118.10 million during the reported quarter from $42.17 million in Q3 FY16. In Q3 FY17, the Company reported a loss from operations of $461.83 million versus a loss from operations of $130.97 million reported in Q3 FY16. Furthermore, the Company posted an adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of $178.90 million in Q3 FY17 compared to $108.60 million in Q3 FY16.

Snap's daily active users (DAUs) registered a 17% y-o-y growth to stand at 178 million in Q3 FY17 from 153 million in Q3 FY16. The Company's average revenue per user (ARPU) increased 39% to $1.17 in Q3 FY17 from $0.84 in Q3 FY16. Furthermore, hosting costs per DAU were $0.68 in Q3 FY17 versus $0.64 in Q3 FY16.

Cash Flow and Balance Sheet

During the three months ended September 30, 2017, Snap used $194.01 million of net cash in operating activities compared to $216.87 million in the previous year's corresponding period. In Q3 FY17, the Company's free cash flow came in at $219.96 million compared to $234.06 million in Q3 FY16. Furthermore, Snap's capital expenditure was $25.95 million in the reported quarter compared to $17.19 million in Q3 FY16.

The Company had a cash and cash equivalents balance of $317.55 million as on September 30, 2017, compared to $150.12 million as on December 31, 2017.

Stock Performance Snapshot

December 18, 2017 - At Monday's closing bell, Snap's stock advanced 2.22%, ending the trading session at $16.10.

Volume traded for the day: 20.20 million shares.

Stock performance in the last month – up 28.18%; and previous three-month period – up 9.38%

After yesterday's close, Snap's market cap was at $19.75 billion.

The stock is part of the Technology sector, categorized under the Internet Software & Services industry. This sector was up 0.9% at the end of the session.


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