Snap posted a thinner-than-expected loss in the third quarter on Thursday, as the company compensates for declining user numbers with higher revenue per user.
Snap's shares, which gained 6 percent during the regular session, saw the report go up to 8 percent in extended trading before the crash, up to 4 percent negative.
Wall Street has the active user numbers for Snaps photo sharing app, Snapchat, as a global social media usage platform in mind. The reported figure of 186 million is perfectly within the forecast, but a decline of 1 percent from the previous quarter.
While Snap earns more money per user than Wall Street predicted, its average revenue per user was $ 1.60, compared to consensus estimates of $ 1.52. This suggests that the company's monetization efforts may pay off.
Snap has optimized and expanded its third-party promotional offerings and built content partnerships to become profitable in 2019.
Snap still loses money a slowdown rate. The company reported negative free cash flow of $ 159 million in the third quarter, an improvement over the company's negative free cash flow of $ 234 million in the second quarter. [Snap] forecasts $ 355- $ 380 million in revenue for the fourth quarter, which is $ 370 million consensus estimates, according to Refinitiv.
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