A：Snap's daily active users increased by 34 million or 8% year over year to reach 477 million. The monthly active users increased by 60 million or 7% year over year to reach 943 million.

A：Other revenue, which includes SnapChat plus subscription revenue, increased 54% year over year to $190 million, with an annualized run rate of more than $750 million.

A：Snap remains disciplined in aligning investments with core strategic priorities while driving operating leverage over time.

A：New features and enhancements introduced to the SnapChat platform include Infinite retention for chat, homesafe for automatic check-in, the SnapChat keyboard with custom emoji, and various updates aimed at enhancing visual communication and community connections.

A：The upgrades to the content recommendation model and infrastructure have improved freshness and relevance across the platform, with a significant increase in the share of total Spotlight views from content posted in the last 24 hours.

A：New monetization tools and collaboration formats introduced for creators include sponsored Snaps, promoted places, and the launch of Lens Plus.

A：The current strategy focus is on improving average revenue per user by directly monetizing core products, which includes initiatives like SnapChat plus, sponsored snaps, promoted places, and testing new features like memory storage plant. This is expected to affect engagement metrics adversely, and the company is recalibrating investments to improve financial efficiency.

A：The company expects overall DAU to decline in Q4 due to internal and external factors, including the impact of new regulations. There is also a belief that these actions are necessary to strengthen the business for the long term by improving monetization efficiency, ensuring compliance, and positioning staff for sustainable growth.

A：Snap has more than 350 million daily active users engaging with AR experiences. The company is a global leader in augmented reality, with users creating and reimagining snaps more than 8 billion times per day using AR lenses, and over 400,000 creators from nearly every country have built more than 4 million lenses.

A：In Q3, Snap introduced the Imagine Lens, the first open prompt image generation lens, which allows users to create or reimagine snaps with AI. Over 500 million snapchatters engaged with AI-powered lenses more than 6 billion times, with specific features like the AI face swap lens being used over 1 billion times.

A：Games have become an increasingly social experience on SnapChat, with over 180 million people playing games every month, and sharing up more than 100% year over year. The introduction of games chat drawer has facilitated seamless multiplayer experiences, while new tools in Lens Studio and features like turn-based gameplay and enhanced leaderboards have driven innovation across popular titles.

A：Snap's augmented reality ecosystem has seen several updates, such as no longer requiring Snap branding for the Camera Kit, introducing Snap OS 2.0 with improvements for performance and productivity, and adding features like Travel Mode and iconnect. These updates are designed to create a more expressive, scalable, and monetizable AR ecosystem.

A：The company's long-term vision for AR extends beyond smartphones, aiming for a future where computing is natural, contextual, and integrated into the environment. Snap is advancing this vision with developments like Snap OS 2.0, Lens Studio, Snap Cloud, and a focus on next-generation computing experiences.

A：The company has made significant progress across its advertising platform, focusing on AI-driven ad performance, high impact ad formats, and marketplace execution. Investments in AI and machine learning have led to measurable gains, with dynamic product ads showing improved conversion rates and purchase-related ad revenue growing 30% year over year.

A：Sponsored ads on SnapChat have shown strong performance, with up to 22% higher conversions and up to 19% lower cost per action. They are increasingly direct response focused, delivering personalized and contextually relevant experiences, and are perceived as relevant by 85% of Snapchatters.

A：Promoted Places is an offering that bridges digital engagement with real-world action by allowing advertisers to highlight nearby store locations within Snapchat's map, which has demonstrated its ability to drive performance in local marketing with double-digit lifts and visitation increases. The fast casual chain Panda Express saw a 15% incremental lift in visits and a 10 point increase in brand favorability, as measured by a brand list study, following a Promoted Places campaign.

A：The App Powerpack is a unified suite of features designed to improve performance across both sponsored and non-sponsored content for app-based advertisers. Key features include target cost bidding, new app end cards that incorporate App Store images, and playables for game previews. Early results indicate a 25% lift in iOS app installs and strong returns, reinforcing Snapchat's role as a scalable performance channel for mobile marketers.

A：The Snap Smart Campaign Solution Suite has advanced the company's automation capabilities through smart targeting and an automated budgeting solution. These tools have delivered an average 8.8% increase in conversions for adopted ad sets and a 5% improvement in the cost per action. Snap plans to broaden the availability of these solutions early next year.

A：Snap plans to realign its sales teams and agency partnerships to target the medium customer segment, which currently has low penetration despite a strong product market fit. This strategy is expected to become a meaningful growth lever through 2026. Snap also expanded premium tiers such asLens Plus and Platinum bundles, introduced new AR and AI experiences, and is planning to enhance support for live streaming and creator-audience relationships to sustain and enhance its growth infrastructure.

A：Snap entered a partnership with Perplexity AI to integrate its conversational search directly into Snapchat. This integration will enable Snapchatters to ask questions and receive conversational answers from verifiable sources within the app. Perplexity will pay Snap $400 million over one year through a combination of cash and equity. Revenue from the partnership is expected to begin contributing in 2026, positioning Snap as a leading distribution channel for intelligent agents.

A：In Q3, total revenue was $1.51 billion, up 10% year over year. The revenue growth was primarily driven by a 8% year-over-year increase in advertising revenue to $1.32 billion, with a client revenue of $190 million. The advertising revenue growth was attributed to strong demand for purchase and purchase optimization ads. SnapChat Plus subscribers increased 35% year over year to nearly 17 million in Q3.

A：Europe and the rest of the world experienced significant acceleration in advertising revenue growth in Q3, with year-over-year growth of 12% and 13%, respectively. Rest of world advertising revenue grew with an acceleration of 10 percentage points compared to the prior quarter. In contrast, North American advertising revenue grew only 1% year over year in Q3, continuing to lag the global business and serving as the primary headwind to overall revenue growth.

A：Personnel costs increased 12% year over year due to an 8% increase in headcount, while legal costs including litigation and regulatory compliance also contributed to the rise in operating expenses.

A：The 50 million year-over-year improvement in net loss largely reflected the flow-through of a 50 million increase in adjusted EBITDA, a 32 million increase in other income due to the repurchase of convertible notes at a discount, and offset by a 29 million increase in interest expense.

A：For infrastructure costs, the guidance was for quarterly costs of 82 to 87 cents per DAU, and the company hit the midpoint of this range in Q3 and Q4. For other costs of revenue, the full-year cost was targeted at 21% of revenue, and the adjusted operating expenses were guided to be between 2.7 and 2.75 billion, reduced earlier to 2.65 to 2.7 billion.

A：Adjusted EBITDA was 182 million in Q3, an improvement of 50 million compared to the prior year. Net loss was 104 million in Q3 compared to a net loss of 153 million in Q3 of the prior year.

A：The Q4 revenue guidance range is 1.68 billion to 1.71 billion, implying year-over-year revenue growth of 8% to 10%.

A：Monetization for the partnership starting in 2026 is anticipated to involve ad sales for the content within the perplexity bot that lives inside of Snap.

A：The leverage in cost of revenue is attributed to a shift to spotlight and sponsors, which has resulted in a cost structure that is more efficient.

A：The Perplexity Partnership is a collaboration between SnapChat and Perplexity to distribute AI agents through SnapChat's chat interface. This partnership will bring Perplexity's answer engine to SnapChat, positioned in the default placement in the chat inbox, which is expected to be valuable for both the community and Perplexity's business growth by driving additional subscribers.

A：SnapChat is looking to expand its partnerships, particularly with advertisers who are focused on leveraging sponsored snaps to distribute conversational commerce experiences with their brands. This is part of SnapChat's strategy to better monetize its core product value and improve cost efficiency.

A：To improve financial performance, SnapChat is working on enhancing top line growth and becoming more efficient in cost of sales. This includes improving sponsored snaps and promoted places for better monetization, and introducing new revenue-generating business lines such as Memory Storage Plans. Additionally, the company is optimizing content programs, recalibrating investments in community growth, and aligning the cost structure with the long-term financial potential of each market.

A：In Q3, SnapChat's financial results were positively affected by a mix shift, with impressions being delivered to sponsored snaps and to a certain extent, Spotlight, which have higher margins. This contributed to a gross margin improvement, resulting in a gross margin of 55% in Q3, up from 52% in the prior quarter and 54% in the prior year.

A：SnapChat sees potential for its platform to evolve by becoming an open platform for brand messaging integrations and possibly allowing the ad stack to open up as well. There is an opportunity to distribute AI agents through the chat interface and to support partners like Perplexity by developing APIs. This is in line with the shift in customer behavior towards engaging with chatbots and the overall growth in daily active users.

A：To address engagement headwinds, SnapChat is focusing on introducing new conversation starters and migrating user behavior from replying to friend stories to sharing Spotlight videos, reposting them, or playing games with friends. The company is also investing in forthcoming product initiatives aimed at new ways to start conversations. However, there are trade-offs with this approach as the focus shifts towards more profitable growth, which may include changes in infrastructure and marketing investments aligned with the largest long-term monetization potential. These changes may temporarily affect engagement.

A：Apple is providing new age assurance signals that will be used to detect underage users this quarter, which could also have an impact on daily active users. Google is rolling out a solution as well, perhaps at the beginning of next year, which may also affect daily active users.

A：Efforts have been made to achieve strong product market fit with app, product-led gen, and web direct response products. Improvements include speeding up onboarding signals, simplifying account setup, and enhancing partner onboarding to scale the business. There have also been improvements in media and login to spend time for the app cohort. The business development team has been successful in onboarding more customers, and plans include investing further to accelerate growth with small and medium customers.

A：Direct response revenue grew 8% year over year, with an acceleration of three percentage points over the prior quarter. Factors contributing to this growth include strength in pixel purchase demand, app-to-optimizations, and broad strength across the S&B segment. Europe and Rest of World showed particularly strong results, with year-over-year growth of 12% and 13%, respectively. North America lagged, but there was a 25% year-over-year growth in the SMB segment. While not expecting recovery in the North America large client segment in Q4, efforts are focused on driving growth and building momentum over time.

A：The company has worked to keep infrastructure costs flat into 2026. Factors that could drive costs higher include continued investment in ML and AI infrastructure capacity, focus on capacity utilization improvement, growth scaling the business with an increased community, and efforts to improve the efficiency of the cost structure and cost to serve. These include optimizing services from cloud partners, pricing, and engineering costs relative to market potential.

A：The company has put Spectacles into its own standalone subsidiary to create more optionality and accelerate technical leadership. This allows for potential partnership opportunities as the public rollout approaches. The killer use case for Spectacles and lenses is anticipated to drive the partnership, with a focus on unique experiences developers roll out regularly.