Po

The buzz over “baby face” filters has disappeared, so Snap Inc. will be looking to prove he’s grown up.

Snap had a more muted user growth forecast for the quarter, calling for 2 million to 4 million new daily active users during its earnings call in July. Analysts polled by FactSet, on average, expect their numbers to fall at the high end of this range. Barclays analyst Ross Sandler said estimates for the purchase range from 6 million to 7 million, which he believes is “expressible,” although the company also tends to deal with “material seasonality” during the summer, leading to lower additions.

Earnings: Analysts polled by FactSet showed an adjusted loss for the third quarter of 5 percent per share. The average valuation calls for a 3 percent loss per share, according to Estimate, which cites forecasts by hedge funds, academics and others. A year ago, Snap lost 12 cents per share.

Revenue: FactSet and Estimate consensus both call for $ 435 million in third-quarter revenue, up from $ 298 million a year earlier.

Snap’s gaming efforts are of key interest to analysts, following the company’s recent push to introduce new multiplayer games to keep users more engaged with the Snapchat service.

The company is likely to give updated information about the progress of the games during the conference call. Guggenheim’s Michael Morris also has a positive impression of Snap’s work in gaming, as he claims it helps the company hook users onto more elements of the Snapchat platform that actually generate revenue.

“Importantly, we believe that the use of the platform mix continues to shift to monetized areas, including discover and play,” writes Morris, who has a buy rating and a $ 22 target on the stock. “We see these elements coming together to lead to a narrowing of the per-user income gap between Snap and social media peers.”

Sandler of Barclays has an upbeat view of the advertiser traction headline in the report as Snap has tweaked performance metrics for different verticals and reorganized its sales. While his $436 million revenue estimate is roughly in line with consensus, he sees this as a place to flip and in relation to the company’s fourth-quarter Outlook. (Factset’s consensus calls for $555 million in fourth-quarter revenue, while Barclays ‘ model is $547 million.)

It has an overweight rating in stock and a $ 19 target.

Join the conversation