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Snap forecasts fourth-quarter revenue below expectations

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Snap forecasts fourth-quarter revenue below expectations
FILE PHOTO: A woman stands in front of the logo of Snap Inc. on the floor of the New York Stock Exchange (NYSE) while waiting for Snap Inc. to post their IPO, in New York City, NY, U.S. March 2, 2017. REUTERS/Lucas Jackson   -   Copyright  Lucas Jackson(Reuters)
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(Reuters) – Snap Inc <SNAP.N> on Tuesday forecast fourth-quarter revenue largely below Wall Street estimates, sending its shares down 7% in after-market trading before paring some of the losses.

The parent company of photo messaging app Snapchat estimated fourth-quarter revenue of $540 million (£418.99 million) to $560 million, the midpoint of which was below analysts’ estimate of $555.4 million, according to IBES data from Refinitiv.

The outlook overshadowed Snap’s third-quarter results released on Tuesday, which showed unexpectedly large growth in daily active users to 210 million in the period ended Sept. 30, up from 203 million in the prior quarter.

It had 186 million users in the year-ago quarter.

The number, a widely watched metric by investors and advertisers, was above analysts’ average estimate of 206.6 million, according to IBES data from Refinitiv.

(Reporting by Akanksha Rana in Bengaluru and Sheila Dang in New York; Editing by Shailesh Kuber and Richard Chang)

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