Financial Data and Key Metrics Changes - Total revenue increased by 10% year over year to $1,510,000,000 driven by improved advertising demand and expansion of direct revenue streams [6][35] - Advertising revenue reached $1,320,000,000, up 5% year over year, with direct response advertising revenue increasing by 8% year over year and 13% quarter over quarter [6][35] - Net loss reduced by more than 30% year over year to $104,000,000, reflecting progress towards sustained profitability [7][42] - Adjusted EBITDA was $182,000,000, an improvement of $50,000,000 compared to the prior year, with adjusted EBITDA margins expanding to 12% [7][42] - Free cash flow was $93,000,000 in Q3, contributing to a trailing twelve-month free cash flow of $414,000,000 [7][42] Business Line Data and Key Metrics Changes - Other revenue, including Snapchat Plus subscription revenue, increased by 54% year over year to $190,000,000 [6][35] - The SMB advertising business grew at a rate of more than 25% in Q3, while the large client solutions business posted a modest decline [36][75] - Global impression volume grew approximately 22% year over year, with total eCPMs down approximately 13% year over year due to increased inventory from sponsored snaps [39][40] Market Data and Key Metrics Changes - Advertising revenue growth in Europe accelerated to 12% year over year, while the Rest of World segment grew by 13% year over year [36][74] - North America advertising revenue growth lagged at 1% year over year, with the large client solutions segment accounting for approximately 43% of total global revenue [36][37] Company Strategy and Development Direction - The company aims to reach 1,000,000,000 monthly active users globally, focusing on improving average revenue per user through monetization of core products [17][32] - Investments in augmented reality and AI are prioritized, with new features and tools being introduced to enhance user experience and engagement [6][18][24] - The company is recalibrating investments in community growth and cost structures to improve financial efficiency [14][64] Management's Comments on Operating Environment and Future Outlook - Management anticipates potential declines in daily active users in Q4 due to internal and external factors, including regulatory changes and age verification implementations [17][64] - The company remains committed to long-term growth despite short-term engagement headwinds, focusing on monetization efficiency and compliance with evolving regulations [16][64] Other Important Information - The partnership with Perplexity AI is expected to enhance personalization and drive additional subscribers, with monetization from this partnership anticipated to begin in 2026 [34][51] - The company has authorized a new share repurchase program of $500,000,000 to manage share count for long-term shareholders [46] Q&A Session Summary Question: On the Perplexity partnership, is the cash stock split already determined? - Management expressed excitement about the Perplexity partnership, noting that monetization will not begin until the integration rolls out, likely in early 2026 [51][52] Question: How do you see Snap's role evolving as a distribution channel? - Management highlighted the opportunity to open up the chat interface to more AI agents and conversational commerce experiences, indicating a focus on enhancing distribution for advertisers [60][61] Question: Can you provide an update on direct response advertising growth? - Direct response revenue was up 8% year over year, with strong performance in pixel purchase demand and app optimizations, particularly in Europe and the Rest of World [72][74] Question: What is the conviction level on keeping infrastructure costs flat next year? - Management indicated a focus on improving capacity utilization and efficiency in infrastructure costs, aiming to maintain flat costs into 2026 [80][81] Question: Any updates on Spectacles and potential financial partners? - Management confirmed ongoing preparations for the public release of Spectacles, leveraging existing software and developer tools to enhance technical leadership in the AR space [85]

Group 1 - Snap, Inc. shares have increased by 14% over the past five days, driven by heavy trading volume and speculation surrounding buyout rumors and the TikTok deal [1][5][6] - The stock is trending on social media platforms, with significant speculation but limited concrete information [2] - A user on X noted that trading volume has reached record levels, suggesting that significant developments may be imminent [3] Group 2 - Snap is focusing on new AR Spectacles and Snap OS 2.0, which are seen as key innovations to capture the emerging augmented reality market [4] - The upcoming Spectacles are described as wearable computers with features like real-time AI translation and interactive gaming [4] - Snap OS 2.0 aims to enhance user experience with an intuitive interface and immersive AR capabilities [4] Group 3 - There are rumors of interest from major tech companies such as Google, Amazon, and Apple in acquiring Snap, recalling Meta's previous bid in 2013 [5] - The potential divestiture of TikTok is viewed as a double-edged sword for Snap, with possible gains in users and advertising revenue, but also risks from new competitors [6] Group 4 - Snap has a high short interest, estimated at 13.3% of outstanding shares, which could lead to a short squeeze if the stock continues to rise [7] - The current trading activity and stock price surge are attributed to a combination of TikTok deal hype, buyout rumors, optimism about new products, and meme-like momentum [8]

Group 1 - Snap's stock experienced a 5.7% increase, attributed to investor optimism surrounding the new augmented reality operating system, Snap OS 2.0 [1][2] - Snap OS 2.0 is described as faster, more powerful, and user-friendly, with enhancements in features like Spotlight, Gallery, and Lenses [4] - The company is positioned as a key competitor to Meta Platforms in the smart glasses market, which is expected to grow as Meta pushes into this category [5] Group 2 - Despite having nearly 1 billion monthly active users, Snap has struggled to monetize its user base effectively, primarily due to investments in AR technology [6] - The upcoming release of consumer-focused smart glasses is seen as a critical opportunity for Snap to transition from a social media platform to a profitable business [6]

Group 1 - Snap Inc's shares are experiencing a surge, up 7.4% to $8.76, following the announcement of Snap OS 2.0 and plans to release Spectacles in 2026 [1] - The stock has gained 21.2% since the beginning of the month and is on track for its seventh daily gain in eight sessions, although it remains down 18.7% year to date [2] - There is significant activity in options trading, with 334,000 calls and 103,000 puts exchanged, indicating heightened interest compared to typical volumes [3] Group 2 - Short interest in Snap Inc has increased by 25.5% over the last two weeks, now representing 13.1% of the stock's available float, with a coverage time of nearly three days at the average trading pace [4]

Core Viewpoint - Snap Inc's stock surged over 7%, reaching a seven-week high of $8.72, following the launch of its new Snap OS 2.0, which supports the upcoming sixth-generation consumer Spectacles augmented reality glasses set to launch in 2026 [1] Company Developments - Snap Inc launched Snap OS 2.0 on September 15, designed specifically for the new Spectacles AR glasses, enhancing mobile applicability across multiple dimensions [1] - The sixth-generation Spectacles are positioned as the first consumer-targeted AR hardware product, indicating a significant technological advancement for the company [1] Market Context - Ongoing uncertainties surrounding TikTok's operations in the U.S. have led investors to view Snap as a potential beneficiary of any market share disruptions that may affect TikTok [1]

Core Viewpoint - Snap's stock price increased by over 6% in pre-market trading, driven by positive investor sentiment towards Snap OS 2.0 and its new Spectacles, which focus on augmented reality (AR) [1] Company Summary - Snap's stock reached a high of $8.7, marking its highest point in recent trading sessions [1]

Core Insights - Snap Inc.'s shares experienced a significant rally of 11.63% over the past week, driven by a major product announcement and ongoing geopolitical uncertainty surrounding TikTok [1][2][6] - The trading volume reached unprecedented levels, with over 202 million shares traded on September 18th, and nearly 400 million shares exchanged in the last two trading days alone, indicating heightened investor interest [2][3] Product Development - The bullish sentiment was fueled by the announcement of Snap OS 2.0 on September 15th, which is a substantial software upgrade for its Spectacles augmented reality glasses, featuring a faster browser, WebXR support, and new developer tools [4][5] - This product innovation highlights Snap's commitment to advancing in the augmented reality sector, with a public launch of Spectacles planned for 2026 [5] Market Dynamics - The uncertainty surrounding TikTok's U.S. operations has positioned Snap as a potential beneficiary, as investors speculate on the impact of any disruptions to TikTok's market share [6][7] - The combination of Snap's product news and external market dynamics has attracted significant attention from both institutional and retail investors [7] Stock Performance - Despite a 3.32% drop on Friday, Snap's shares surged 8.46% overnight on Monday, although the stock remains down 27.40% year-to-date and 20.00% over the past year [8] - Snap's long-term price trend is weaker, while short and medium-term trends show strength, although its growth ranking is relatively poor [8]

Company Overview - Snap Inc. shares are experiencing a strong uptrend, attributed to the announcement of its new fifth-generation Spectacles and Snap OS 2.0 [1] - The stock is identified as the "Stock of the Day" due to its upward movement and potential for further gains [1] Market Dynamics - The concept of "gaps" in stock trading suggests that Snap may continue to rise as gaps tend to refill, indicating a potential for price recovery [1] - Resistance levels in the market are formed when a significant number of shares are available for sale, which can impact the stock's upward movement [2] - Regretful buyers, who hold onto losing positions, may create resistance when they place sell orders at their breakeven price, affecting the stock's price trajectory [3] Technical Analysis - Snap's stock recently experienced a gap down from approximately $9 to $8, indicating a lack of trading activity between these levels [4] - The absence of trading in this range suggests limited sell interest, which may allow buyers to bid higher prices, potentially pushing the stock price upward [6]

Core Viewpoint - Snap's stock rose over 3.8%, reaching a peak of $7.75, following the launch of its new augmented reality (AR) operating system, Snap OS 2.0, which promises faster browsing experiences and updated AR application features [1] Group 1: Product Development - Snap introduced its new AR glasses operating system, Snap OS 2.0, which includes features for playing long videos directly on the glasses and accessing various types of websites [1] - The new system is currently applied to the developer version of Spectacles, with plans for a lighter consumer version, Specs, set to launch in 2026, also running on Snap OS [1]