SNAP stock is trading lower in the morning session despite Snap Inc (NYSE:SNAP) reporting better than estimated third-quarter earnings.

Earnings season has well and truly begun, and some of the biggest corporations in the United States are announcing their Q3 2019 results on a daily basis. One of the more highly anticipated earnings reports was that of Snap; the company released its financial results yesterday.

Weak Guidance

While the company managed to beat expectations on key metrics, the projected revenues put forward by Snap proved to be a disappointment for investors.

Snap, which is the manufacturer of Snapchat, managed to deliver a lower than expected loss in the third quarter. According to Refinitiv data, analysts had expected a loss per share of 5 cents, but the company managed to limit the losses to 4 cents a share.

SNAP stock is down 5.50% at $13.23.

The company generated revenues of $446 million, which was higher than the estimates of $435.1 million as well. Most importantly, Snap managed to beat analyst estimates for revenue per user, as well. It generated $2.12 per user during the quarter and beat analyst estimates of $2.10 per user.

Global daily active users for the quarter were pegged at 210 million, which was again higher than analysts’ estimate of 207 million.

However, it was the company’s forecast for the fourth quarter that has proven to be a disappointment for investors. Snap stated that it expects its revenue for the quarter to be in a range between $540 million and $560 million. While that shows a sequential rise, it is a bit of a disappointment considering the fact that Refinitiv data suggests that Snap’s sales for the quarter are going to be $555.4 million.

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However, the Chief Executive Officer of the company, Evan Spiegel, seemed bullish about the company’s prospects. In a statement, he said, “We are a high growth business, with strong operating leverage, a clear path to profitability, a distinct vision for the future, and the ability to invest over the long term.”

SNAP stock has soared 135% since the beginning of this year.

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