Snap Inc. reported its financial results for the three and nine months ended September 30, 2024, showing significant improvements in revenue and reduced net losses compared to the same periods in 2023. For Q3 2024, the company generated revenue of $1,372.6 million, a 15% increase from $1,188.6 million in Q3 2023. For the nine months ended September 30, 2024, revenue reached $3,804.1 million, up 17% from $3,244.8 million in the prior year.
The net loss for Q3 2024 was $153.2 million, a notable improvement from a loss of $368.3 million in Q3 2023. Similarly, the net loss for the nine months ended September 30, 2024, was $707.0 million, down from $1,074.2 million in the same period last year. The operating loss also decreased, with Q3 2024 reporting an operating loss of $173.2 million compared to $380.1 million in Q3 2023.
Cash flow from operating activities showed a positive trend, with $115.9 million generated in Q3 2024, compared to $12.8 million in Q3 2023. For the nine-month period, cash provided by operating activities was $182.8 million, up from $81.9 million in the previous year. Free cash flow for Q3 2024 was $71.8 million, a significant turnaround from a negative $60.7 million in Q3 2023.
The company’s total assets as of September 30, 2024, were $7.6 billion, down from $8.0 billion at the end of 2023. Total liabilities decreased to $5.4 billion from $5.6 billion. Cash and cash equivalents stood at $965.0 million, down from $1.8 billion at the end of 2023, while marketable securities increased to $2.2 billion from $1.8 billion.
Strategically, Snap Inc. has been focusing on cost efficiencies and profitability, which included a restructuring plan that reduced global headcount by approximately 10% in early 2024. This restructuring resulted in total charges of $70.2 million for the nine months ended September 30, 2024. The company also repurchased 27.9 million shares of Class A common stock for $311.1 million during the nine-month period.
In terms of user engagement, Snap reported 443 million daily active users (DAUs) for Q3 2024, a 9% increase year-over-year. The average revenue per user (ARPU) rose to $3.10 from $2.93 in Q3 2023. The company continues to rely heavily on advertising revenue, which accounted for approximately 96% of total revenue in recent years, while also exploring subscription models like Snapchat+.
Overall, Snap Inc. is navigating a challenging market landscape while making strides toward improved financial health and user engagement.
About Snap Inc
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