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SNAP Shares Plunge 30% on Higher Loss Expectations for Q1

SNAP Shares Plunge 30% on Higher Loss Expectations for Q1 Feb. 7, 2024, 9:37 a.m., readers: 54

Snap (NYSE:SNAP) experienced a 30% plunge in pre-market trading on Wednesday after the company reported Q4 revenues below expectations and predicted a larger EBITDA loss for the upcoming March quarter than analysts had anticipated. In Q4, Snap's adjusted earnings per share (EPS) were 8 cents, down from 14 cents a year earlier, but surpassing the analyst expectation of 6.4 cents. Its revenue increased by 4.7% year-over-year to $1.36 billion, falling short of the $1.38 billion consensus. Revenue from North America reached $899.5 million, a 2.2% increase from the previous year, exceeding the $875.9 million forecast. The company's adjusted EBITDA stood at $159.1 million, a 32% decrease from the previous year but above the $111.8 million forecast. Snap also announced it had 414 million daily active users (DAUs) in the quarter, a 10% increase from the prior year, surpassing the 411.59 million expected by analysts. However, the average revenue per user decreased by 5.2% year-over-year to $3.29, missing the $3.33 projection. Looking into the first quarter of the fiscal year, Snap anticipates revenues between $1.10 billion and $1.14 billion, compared to the consensus of $1.11 billion. It expects an adjusted EBITDA loss ranging from $55 million to $95 million, far worse than the forecasted $32.7 million loss. For the first quarter, Snap is projecting 420 million DAUs, which would surpass the expected 418.55 million.

About NYSE: SNAP

S nap Inc. operates as a camera company in North America, Europe, and internationally. The company offers Snapchat, a camera application with various functionalities, such as Camera, Communication, Snap Map, Stories, and Spotlight that enable people to communicate visually through short videos and images. It also provides Spectacles, an eyewear product that connects with Snapchat and captures photos and video from a human perspective;

Price: 15.35
Market cap: 25.2 billion USD
Eps: -0.80
P/e ratio: -19.18
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