The firm is adjusting revenue estimates slightly downwards due to reduced growth expectations for Snapchat+, though this is partially offset by a modest increase in anticipated advertising revenues. Consequently, the 2025 revenue forecast has been trimmed by 1% to $6.1B. Nonetheless, EBITDA projections have been increased by 13% to $718M, reflecting higher margin expectations and a broadening of sector valuation multiples.

Snap's third-quarter revenue aligned with expectations, and its fourth-quarter guidance also met forecasts at the upper range. The central point of interest revolved around the expansion of direct response revenue, particularly following a period of perceived minimal sequential growth. The doubling in the number of advertisers suggests that the platform is successfully attracting smaller marketers, although convincing larger marketers to follow suit could require additional time.

Snap's third-quarter earnings results exhibited a moderate outperformance yet presented a mixed picture. Despite the ongoing product innovations, their long-term significance remains uncertain, and there's a possibility that efforts to simplify could in fact lead to disruptions in revenue over the short to medium term.