Snap Inc. co-founder and CEO Evan Spiegel speaks during the Viva Technology conference dedicated to innovation and startups, at the Porte de Versailles exhibition center in Paris, June 17, 2022.
Benoit Tessier | Reuters
Snap reported revenue that trailed analysts’ estimates on Tuesday and issued a forecast that came in a bit below Wall Street expectations. The stock plunged 30% in extended trading.
Here’s how the company did:
- Earnings per share: 8 cents, adjusted, vs. 6 cents expected by analysts, according to LSEG, formerly known as Refinitiv.
- Revenue: $1.36 billion vs. $1.38 billion expected, according to LSEG.
- Global Daily Active Users: 414 million vs. 412 million expected, according to StreetAccount.
- Average revenue per user: $3.29 vs. $3.33 expected, according to StreetAccount.
Snap has struggled to rebound from the downturn in the digital ad market, and has now reported six straight quarters of single-digit growth or sales declines. For the fourth quarter, revenue rose about 5% year-over-year to $1.36 billion from $1.3 billion a year earlier.
The company attributed some of the weakness to the war in the Middle East, which erupted in October, beginning with Hamas’s attack on Israel.
“While we are encouraged by the progress we are making with our ad platform and the improved results we are delivering for many of our advertising partners, we estimate that the onset of the conflict in the Middle East was a headwind to year-over-year growth of approximately 2 percentage points in Q4,” Snap said in a letter to investors.
Growth is expected to accelerate in the first quarter, but not quite as fast as analysts were expecting. Snap forecast sales for the quarter of $1.095 billion to $1.135 billion, representing about 11% growth at the midpoint of the range, which was $1.115 billion. Analysts were looking for revenue of $1.117 billion.
Daily active users for the first quarter will be 420 million, Snap said, slightly topping analyst estimates of 419.3 million.
Snap shares sank…
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