Snap raser i etterhandelen

US tech company Snap reported revenues of $1.72 billion in the third quarter, according to figures released by the company on Wednesday evening. Analysts had anticipated $1.73 billion in revenue, according to Bloomberg. Revenue increased by 14 percent compared to the same period last year. Earnings per share were $0.03, compared to the expected $0.15.

The adjusted earnings per share were $0.03, compared to the expected $0.15. Snap reported a net loss of $56 million, compared to a $104 million profit in the same quarter last year. Adjusted operating income before write-offs (EBITDA) was $383 million, compared to the anticipated $338 million, according to Bloomberg. "In the third quarter, we delivered a positive net result while revenues grew by 14 percent to $1.72 billion.

This demonstrates the progress we are making in building a more profitable business," Snap CEO Evan Spiegel said in the earnings release. One of the major points of tension before the number was released was the performance of Snap's advertising business and user numbers. Snapchat had 495 million daily active users in the third quarter, compared to analysts' expectation of 499.3 million, according to Bloomberg.

This represents a 4 percent increase from the same period last year. In North America, the number of daily active users fell from 98 million to 92 million. In Europe, the number fell from 100 million to 98 million. However, the number of monthly active users increased to 977 million, up from 943 million in the same period last year.

Average revenue per daily active user was $3.48, compared to the expected $3.45. Snap expects revenue of between $1.95 and $1.99 billion in the next quarter. This is in line with analysts' expectations of $1.96 billion. Snap's stock has fallen over 30 percent so far this year before the number release. Options markets have priced in a price movement of around 13 percent after the earnings release, according to Bloomberg.