Overview
- Revenue reached $1.049 billion in Q3, up 17% year over year, with management signaling continued top-line strength into next quarter.
- Monthly active users hit a record 600 million for a ninth straight quarter, with Gen Z now the largest and fastest‑growing cohort.
- Ad impressions rose 54% while ad pricing fell 24%, reflecting a shift toward lower‑priced international inventory and weighing on near‑term ARPU.
- International users account for roughly 83% of the audience but about a quarter of revenue, as Europe grew 41% and Rest of World 66% versus 9% in US & Canada.
- RBC’s Brad Erickson cut the price target to $38 and kept an Outperform, citing customer concentration and macro sensitivity, while other commentators point to >25% free cash flow margins, a ~3.4x EV/forward revenue multiple, and AI‑driven product efforts as longer‑term upside.