Snap beat expectations to post a 5 per cent sales rise in the third quarter, reversing two quarters of declines, but warned that the Israel-Hamas conflict was hurting its revenues in the current quarter.
Revenue at the social media company rose to $1.189bn, above analysts’ expectations of an increase to $1.11bn — in signs that the recent advertising slump has been dissipating.
However, in a letter to investors, the company said it had “observed pauses in spending from a large number of primarily brand-oriented advertising campaigns immediately following the onset of the war in the Middle East”, which has created a revenue headwind in the current quarter.
It added some advertising campaigns had resumed while others were just beginning, and said it would not share formal fourth-quarter guidance because of “the unpredictable nature of war”.
Snap shares jumped nearly 25 per cent initially, before falling and were down 5 per cent in after-hours trading.