Joanna Coles, a director at Snap Inc (NYSE:SNAP), recently sold 6,434 shares of the company's Class A common stock. The shares were sold at a price of $12 each, totaling $77,208. This transaction was conducted under a Rule 10b5-1 trading plan, which Coles adopted on March 8, 2024. Following this sale, Coles retains ownership of 54,761 shares in the company.
In other recent news, Snap Inc. has reported significant growth in its Q3 2024 earnings call, revealing a 15% increase in year-over-year revenue to reach $1.37 billion. The company's daily active users also saw a substantial increase, climbing to 443 million. This growth is largely attributed to Snap's direct response advertising business and the Snapchat+ subscription service, which saw the number of active advertisers more than double from the previous year.
Snap Inc. also launched new ad products and the fifth generation of its augmented reality glasses, Spectacles. Despite a 1% decline in brand-oriented advertising revenue, the company's adjusted EBITDA rose to $132 million, and free cash flow reached $72 million. Snap Inc. also announced a new $500 million share repurchase program.
Looking ahead, Snap Inc. anticipates Q4 revenue to be between $1.51 billion and $1.56 billion, representing an 11% to 15% growth year-over-year. The company plans to continue focusing on cost management and improving monetization, with an emphasis on the new "Simple Snapchat" experience. Adjusted EBITDA for Q4 is estimated to be between $210 million and $260 million, indicating a continued focus on growth and financial performance.
InvestingPro Insights
While Joanna Coles' recent sale of Snap Inc (NYSE:SNAP) shares might raise eyebrows, it's crucial to consider the broader financial context of the company. According to InvestingPro data, Snap's market capitalization stands at $21.17 billion, reflecting its significant presence in the social media landscape.
Despite the insider sale, Snap has shown promising revenue growth. The company's revenue for the last twelve months as of Q3 2024 reached $5.17 billion, with a notable 13.66% growth rate. This positive trend is further emphasized by the quarterly revenue growth of 15.48% in Q3 2024, indicating Snap's ability to expand its top line.
InvestingPro Tips highlight some interesting aspects of Snap's current position. The stock has seen a significant return over the last week, with a 19.9% price increase, and a strong 20.25% return over the last month. This recent momentum could suggest renewed investor confidence in the company's prospects.
However, it's worth noting that Snap is not currently profitable, with a negative operating income of $938.97 million for the last twelve months. This aligns with an InvestingPro Tip indicating that the company has not been profitable over the past year. Nevertheless, analysts predict that Snap will turn profitable this year, which could be a potential catalyst for future stock performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Snap Inc, providing a deeper understanding of the company's financial health and market position.
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