Snap shares tumble over 10% as Q3 revenue and user numbers miss forecasts

Snap shares sank over 10% after the company reported third‑quarter results that fell short of revenue and daily active‑user expectations. Revenue grew 14% year‑over‑year, and net income turned positive at $56 million, reversing a $104 million loss a year earlier. Adjusted earnings of $383 million beat analysts’ $337 million estimate. The firm said daily active users missed forecasts, though it did not give a specific figure. ## Guidance For the fourth quarter, Snap projects revenue between $1.95 billion and $1.99 billion, a midpoint slightly above Wall Street’s $1.95 billion estimate. Adjusted earnings are expected to be $490 million to $525 million, versus the consensus of $498 million. ## Metric Shift In an investor letter, Snap announced that from the first quarter of 2027 it will use globally monthly active users (MAU) as its primary audience metric. The company reported 977 million MAU for the quarter and said it will not chase daily use at the expense of long‑term community value. ## Reaction Chief commercial officer Ronan Harris told analysts that weaker spending by consumer packaged‑goods firms, hit by macro pressures in the United States and the Middle East, dragged down Q3 sales. He added that financial‑services advertisers in the U.S. are showing “very positive signs of growth,” and the firm is looking to diversify beyond CPG. ## Context MAU counts unique users in a month, while DAU counts daily users; shifting focus to MAU signals Snap’s aim for steadier, long‑term growth. Advertiser spending cycles often affect social‑media earnings, explaining the impact of CPG budget cuts.