"While we continued to face significant headwinds to our revenue growth in the quarter, we are optimistic about the improvements we are making to our direct response advertising platform and the early progress we have made improving return on advertising spend (ROAS) for our advertising partners," Snap's investor letter reads. Moving forward, look for Snap to tout and attempt to build efficiency in its advertising business. In Q4 2021, Snap said in SEC filings that "for the years ended December 31, 2021, 2020, and 2019, advertising revenue accounted for approximately 99%, 99%, and 98% of total revenue, respectively." Right now, advertising is Snap's business. Snap remains in the throes of the advertising slowdown and, if the company's investor letter is anything to go by, they don't expect that to let up anytime soon. To that end, Snap has seen a number of downgrades recently, including from Citizens-owned JMP Securities and Jefferies. The stakes were high for Snap today, as Wall Street's grown increasingly skeptical of the company's prospects. The Snapchat messaging application is seen on a phone screen August 3, 2017. Snap stock plunged in after-hours trading by about 13%. "We continue to face significant headwinds as we look to accelerate revenue growth, and we are making progress driving improved return on investment for advertisers and innovating to deepen the engagement of our community," CEO Evan Spiegel said in a statement. The Los Angeles-based company added that it expects to see its DAUs grow to between 382 million and 384 million in Q1 2023. Looking ahead, Snap's Q1 2023 revenue guidance suggests a decline "between -10% to -2% year-over-year." However, that's an internal forecast and the company declined to provide an official one for the third straight quarter. The company also reported a net loss of $288 million, a stark comparison to the net income of $23 million that Snap reported this time last year. Q4 Revenue: $1.3 billion actual versus $1.31 billion expectedĪdjusted Earnings Per Share (EPS): 14 cents versus 11 cents expectedÄaily Active Users (DAUs): 375 million versus 374.7 million expected Here are the key numbers that emerged from Snap's report, as compared with Wall Street's estimates: 31, meeting analysts' expectations on revenue and user growth, but clocking a net loss and weak guidance for this year's Q1. Snap ( SNAP) reported its Q4 2022 earnings on Jan.
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