Snap Inc (NYSE:SNAP) , the Snapchat parent company, saw its shares fall 13% to $5.13 after third-quarter revenue and daily active users missed analysts' estimates, despite better-than-expected adjusted earnings.
Revenue increased 14% from a year earlier to $1.72 billion, falling short of the $1.73 billion forecast by analysts polled by LSEG.
Explaining the sales weakness, Snap's chief commercial officer, Ronan Harris, cited lower spending by consumer packaged goods companies amid "macro pressures in the U.S. and also the Middle East."
On audience performance, global daily active users reached 495 million, below StreetAccount's 499 million estimate.
Average revenue per user, however, matched StreetAccount's forecast at $3.48.
The earnings comparisons were stronger, with adjusted earnings per share of $0.19 exceeding the $0.16 expected by analysts polled by LSEG.
Snap also reported adjusted earnings before interest, taxes, depreciation and amortization of $383 million, above the $337 million projected by analysts, according to StreetAccount.
Its fourth-quarter forecast for that measure ranges from $490 million to $525 million, encompassing analysts' $498 million estimate.
Beyond the adjusted measures, net income totaled $56 million against a $104 million loss a year earlier, while free cash flow rose to $164 million from $93 million.
