SNAPCHAT GAINS 11M NEW USERS WORLDWIDE

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Snap, the parent company of Snapchat, has struggled to turn its growing user base into profits.

The company’s third-quarter revenue increased by 15% year-over-year to $1.37 billion, slightly exceeding analyst expectations, but it still posted a loss of $153 million—a 58% improvement from a $368.3 million loss in the same period last year.

Snapchat’s global user base continues to grow, increasing by 11 million new daily active users in the last three months, bringing the app’s total to 443 million, a 9% increase.

Snap primarily generates revenue from Snapchat platform advertising.

Snap projects revenue for the next quarter, which includes the Christmas season, to be between $1.51 billion and $1.56 billion, which is in line with analysts’ higher projections.

Snap’s stock increased by roughly 7% in after-hours trading after the announcement of a $500 million share buyback.