Snap grows its sales by 15% and announces share buybacks for $500 million

However, its fourth-quarter revenue expectations of $1.51 billion to $1.56 billion are slightly below expectations. analyst projections. Regarding adjusted earnings, the company led by Evan Spiegel predicts that they will be between 210 and 260 million, with the midpoint being higher than the average analyst estimate of 230.7 million dollars.

The user base of Snapchat+, the subscription service launched in 2022 that offers access to exclusive and trial features for a monthly fee of $3.99, grew to 12 million subscribers in the third quarter, up from 11 million reported in August.

This growth can be attributed to Snap’s recent investments in artificial intelligence and augmented reality (AR), which Spiegel said drive new creative experiences for users and boost its advertising platform, key to its long-term growth.

In September, Snap introduced the fifth generation of its augmented reality glasses, Spectacles, intended exclusively for developers. These glasses allow digital images to be overlaid on the physical environment, and are available for $99 per month in an annual program, aimed at developers who want to create AR applications for the glasses.

This focus on developers reflects Snap’s ambition to establish itself as the most friendly platform for developers, who play a crucial role in its AR and Spectacles ecosystem, according to the company.

The augmented reality market is growing, and competitors like Meta are also developing their offering. Shortly after Snap’s announcement of the new Spectacles, Meta CEO Mark Zuckerberg unveiled his experimental AR glasses, Orion, designed to capture the attention of developers in the coming year and with an eye toward a consumer launch. However, the latter also announced the closure of Spark, the studio focused on the development of filters for Instagram, Facebook and Messenger.

These efforts by Snap to expand its product ecosystem and improve its margins underscore its focus on innovating and maintaining its position in a highly competitive market. The company seeks to consolidate itself as a leading AR platform, which could open up new growth opportunities in the medium and long term.