Snap (SNAP) is scheduled to announce Q3 earnings results on Wednesday, November 5th, after market close.
The consensus EPS Estimate is $0.05 (-37.5% Y/Y) and the consensus Revenue Estimate is $1.49B (+8.8% Y/Y).
SA Analyst Julia Ostian stated ahead of Q3 earnings that it expects the social media platform to grow its user base, but monetization and profitability remain significant challenges for the company. He further argues that ARPU and margins are declining, with most user growth coming from less lucrative regions, raising concerns about long-term value creation.
Last quarter, the Snapchat owner reported second-quarter results that failed to impress investors and provided a lackluster forecast. Daily active users in Q2 were 469M, up 8.6% year-over-year but only marginally ahead of the consensus estimate of 468.11M. Average revenue per user was $2.87 in the quarter, below the consensus estimate of $2.89.
Over the last 2 years, SNAP has beaten EPS estimates 88% of the time and has beaten revenue estimates 63% of the time.
Over the last 3 months, EPS estimates have seen 11 upward revisions and 4 downward. Revenue estimates have seen 21 upward revisions and 11 downward.
