Snapchat founder and CEO Evan Spiegel attends a session during the Viva Technology Fair in Paris on June 17, 2022.
Eric Bermont | AFP | Getty Images
pop Shares fell 13 percent in wide trading on Tuesday, after the social media company’s shares fell mentioned Revenue for the fourth quarter came in behind analyst estimates.
Here’s how the company did:
- Earnings per share: $0.14, adjusted, versus $0.11 expected, according to a Refinitiv survey of analysts
- he won: $1.30 billion versus the expected $1.31 billion, according to Refinitiv
- Global Daily Active Users (DAUs): 375 million vs. 375.3 million expected, according to StreetAccount
- Average revenue per user: $3.47 vs. $3.49 expected, according to StreetAccount
Revenue in the quarter was up slightly from the prior year. Like their peers on social media meta and Twitter, Snap was roughly in 2022, as a slowing economy led companies to slash their digital ad budgets and An apple iOS Privacy Update limited targeting capabilities.
In a letter to investors, Snap called it a “challenging year” marked by “macroeconomic headwinds, platform policy changes, and increased competition.”
For the full year, sales rose 12% to $4.6 billion in 2022. In its earnings release, Snap said it would not provide guidance for the coming period. However, the company stated in its investor letter that its “internal forecast” assumes a decline of between 2% and 10% from the prior year. Analysts had expected a slight increase in revenue.
“On the income side, we expect the operating environment to remain challenging, as we expect the headwinds we experienced over the past year to continue throughout the first quarter,” the company said in the letter.
It’s an inauspicious start to the fourth-quarter earnings season for ad-supported internet companies. Investors will get clearer picture The state of the online advertising market later this week. Facebook parent company Meta reported fourth-quarter results on Wednesday, followed by the alphabet And Amazon Thursday.
Meta shares fell 2% after the Snap report. pinterestwhich publishes results next week, it’s down about 5%.
Snap stock fell 81% last year as the Nasdaq had its worst year since 2008. The stock has recovered some of its losses, rising 29% in January, along with a broader rally in the technology sector.
Snap said it is refocusing its investments to focus on growing its community and engagement, accelerating and diversifying its sales growth and developing augmented reality technologies.
The company said that Snapchat+ now has more than 2 million paying subscribers as of the fourth quarter. pop for the first time subscription service last summer, making it a way for users to get access to pre-release and exclusive features for $3.99 a month.
As executives have told analysts several times in the past year, the company’s online advertising platform is designed to be easy to use and enable brands to launch campaigns quickly. But its simplicity also means companies can quickly pause campaigns, which severely affects Snap’s finances.
pop announce In August, it will lay off 20% of its workforce of more than 6,000 employees. The company also put on hold several projects during the year, including its photo shoot drones and featured Snap Originals shows.
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