Snap reported third-quarter revenue and daily active users below expectations, and its shares fell more than 10% in after-hours trading. According to Sina Finance, citing StreetAccount, adjusted earnings were $383 million, above analysts’ estimate of $337 million. Sales rose 14% year over year, and net income was $56 million, compared with a net loss of $104 million a year earlier.

Snap forecast fourth-quarter revenue of $1.95 billion to $1.99 billion, with the midpoint above Wall Street’s $1.95 billion estimate. It expects adjusted earnings of $490 million to $525 million, versus analysts’ previous estimate of $498 million.

Snap executives said in a letter to investors that the company plans to make global monthly active users its “primary audience metric” starting in the first quarter of 2027. The company reported 977 million monthly active users this quarter. The letter said the historical ratio of daily to monthly active users had remained stable, but Snap would not optimize for daily activity at the expense of the community’s long-term value. It said a longer-term perspective would better align reporting metrics with product and safety decisions, strengthen user relationships, create lasting utility, and support broader, more sustainable audience growth.