Snap reported third-quarter results that included sales growing 14% to $1.72 billion and adjusted EBITDA expanding 10 points to 22%. The firm's revenue segment that houses its growing subscription business grew 84% to $350 million, constituting 20% of total sales, up from 13% a year ago.
Snap is a technology company best known for its marquis social media application, Snapchat, a visual messaging application that has amassed hundreds of millions of users. The app was initially only used to communicate with family and friends through photographs and short videos (known as "Snaps"). Users can now enjoy augmented reality, or AR, lenses, content from famous creators and celebrities, updates about local events, and more. Although the app offers a paid subscription option with premium features, advertising sales produce most of the app's revenue. The firm also sells wearable devices called AR Spectacles, which can capture photos and videos overlayed with AR lenses, but these make up a small portion of Snap's overall sales.