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- **User Growth**: DAU 477M (+8% YoY), MAU 943M (+7% YoY), targeting 1B MAU.
- **Revenue Surge**: Q3 $1.51B (+10% YoY), DR ads +8% YoY, Other Revenue +54% YoY (Snapchat+ MAU 17M).
- **AI/AR Innovation**: Gen AI lenses engaged 500M users, AR games MAU 180M, Spectacles OS 2.0 with AR/VR tools.
- **Financial Health**: 55% gross margin, $182M EBITDA, $93M free cash flow.
- **Key Risks**: Q4 DAU decline expected due to age verification, regulatory headwinds.

**【CEO Summary Section】**
- **User Growth**: Daily Active Users (DAU) reached 477 million (+8% YoY), Monthly Active Users (MAU) at 943 million (+7% YoY), with a long-term goal of 1 billion MAU.
- **Revenue Performance**: Q3 revenue $1.51 billion (+10% YoY), driven by 8% YoY growth in Direct Response (DR) advertising and 54% YoY growth in Other Revenue (Snapchat+ subscriptions, AI-powered experiences).
- **New Initiatives**: Introduced Sponsored Snaps, Promoted Places, and memory storage plans; expanded Lens+ and Platinum bundles with AI-powered features.
- **AI & AR Investments**: Gen AI lenses engaged 500 million users, AR games monthly active users (MAU) 180 million; Spectacles OS 2.0 update with AR/VR tools and Commerce Kit for monetization.
- **Engagement Trade-offs**: Anticipated Q4 DAU decline due to age verification rollouts, infrastructure cost realignment, and regulatory headwinds.

**【CFO Financial Commentary】**
- **Revenue Breakdown**: Advertising $1.32 billion (+5% YoY), Other Revenue $190 million (+54% YoY). Europe and Rest of World advertising growth accelerated to 12% and 13% YoY, offsetting North America LCS decline.
- **Gross Margin**: 55% (Q3 2025 vs. 54% Q3 2024), driven by higher-margin Sponsored Snaps and Spotlight impressions.
- **Cost Management**: Adjusted EBITDA $182 million (+$50 million YoY), free cash flow $93 million. Infrastructure cost per DAU $0.85, stable vs. prior quarter.
- **Q4 Guidance**: Revenue $1.68-1.71 billion (+8-10% YoY), adjusted EBITDA $280-310 million.

**【Q&A Highlights】**
- **Perplexity Partnership**: $400 million over 1 year; Perplexity AI answers integrated into chat, no ads sold against responses.
- **Infrastructure Costs**: Targeting flat infrastructure costs into 2026 via ML efficiency, market prioritization.
- **AR Specs Progress**: Public release in 2026; subsidiary formed to explore partnerships, focusing on lenses ecosystem monetization.
- **Regulatory Risks**: Age verification rollouts may impact engagement, but necessary for compliance and long-term monetization efficiency.

Snap Inc. (SNAP) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

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Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

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Operating Income

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Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

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Net Income

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Preferred Stock Dividends

Other Adjustments

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Other Comprehensive Income

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Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SNAP

SNAP fundamentals

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