(Reuters) — Snap on Tuesday forecast fourth-quarter revenue largely below Wall Street estimates, sending its shares down 5% in after-market trading.

The parent company of photo messaging app Snapchat estimated fourth-quarter revenue of $540 million to $560 million, the midpoint of which was below analysts’ estimate of $555.4 million, according to IBES data from Refinitiv.

The outlook overshadowed Snap’s third-quarter results released on Tuesday, which showed larger-than-expected growth in daily active users. Wall Street also glossed over Snap’s estimate it would reach profitability in the fourth quarter, as measured by earnings before interest, tax, depreciation and amortization (EBITDA).

On a conference call with analysts, Snap Chief Financial Officer Derek Andersen said the company’s peak advertising demand period, which runs between the Black Friday and December…

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