Snap Swings to $56M Profit in Q3 as Revenue Jumps 14% to $1.72B, but Stock Slides

Snap Inc. reported a sharp turnaround in its third quarter, swinging to a net income of $56 million from a net loss of $104 million a year earlier. Revenue climbed 14% year-over-year to $1.72 billion, a sign that CEO Evan Spiegel’s push to build a more profitable business is gaining traction. The company also said Snapchat daily active users reached 495 million, up 4% from the prior year. Despite the strong financials, Snap’s stock took a hit after the results, suggesting investors may have been spooked by softer guidance or slower user growth than some had hoped. The company is set to roll out SPECS, its new augmented reality glasses, which could open a new hardware revenue stream but also carries execution risk. The profit swing is a milestone for Snap, which has struggled with losses since going public. Spiegel said the results reflect progress in monetization and cost discipline. Advertisers are responding to improvements in the platform’s direct-response and brand ad products. Snap’s ability to keep growing users and revenue while expanding into hardware will be key to sustaining investor confidence. The next few quarters will show whether SPECS can translate from buzz to bottom line.