Snap’s third-quarter revenue rose 14% year over year to $1.72 billion, and the company reported net income of $56 million, compared with a net loss of $104 million a year earlier. CEO and co-founder Evan Spiegel said the results reflected progress toward building a more profitable business.
Snapchat had 495 million daily active users, up 4% from the same period last year and two million from the second quarter. Investors reacted negatively to the results, sending Snap shares down nearly 10% in after-hours trading.
Spiegel also pointed to the company’s investment in artificial intelligence and its augmented-reality plans, including SPECS. The glasses were unveiled in June and are available for pre-order in the United States, the United Kingdom and France through the SPECS website, with delivery planned for this fall. They are listed at $2,195 and require a refundable $200 deposit.
Snap says SPECS builds on more than a decade of work across augmented-reality technology, including developer tools, an operating system, displays, optics and computer vision. The effort involves more than 7,000 patents. A SPECS First Look pop-up is currently open in Los Angeles.
Last month, Snap named Robert Downey Jr. honorary chief customer experience officer for SPECS, with the aim of raising awareness and creating original content. The company was scheduled to take analysts’ questions on a call at 5 p.m. ET.
Sources: Deadline.