Snap, the parent of Snapchat, said its daily active users grew 18% last quarter to 332 million, beating Wall Street targets but lagging revenue and slightly behind. The Santa Monica-based company, like its competitors, faces resistance to ad revenue from changes to Apple’s privacy policy, macro and supply chain issues, and labor costs.
Revenue increased 38% to $ 1.06 billion. It suffered a net loss of $ 360 million (negative EPS $ 0.02) on revenue of $ 287 million in the previous year.
Snap is the first social media / tech company to post earnings this season, so keep an eye on the digital ad market ahead of next week’s numerous first-quarter results. In Snap’s case, Wall Street wants to see TikTok rise and a declining pandemic also creates resistance.
Evan Spiegel and Snape executives will hold a conference call at 5 p.m. ET.
Netflix and Snap are very different companies (streaming versus social media), but they were both high-value, high-value stocks, and Netflix outperformed this week due to slowing growth.
Snap has invested heavily in tools and content, such as lenses that are valued by its Gen Z audience. Most analysts who follow Snap call it a “buy.” The shares closed 4.29% lower at $ 29.44. They change after working hours, first decreasing and then increasing.
“Our first quarter results reflect the momentum of our business through a challenging operating environment,” said Spiegel. “We remain focused on delivering value to our growing community, our advertising partners’ return on investment, and investing in our augmented reality against our huge potential.”
Snap will host its annual Snap Partner Summit next week.
Source: Deadline
Elizabeth Cabrera is an author and journalist who writes for The Fashion Vibes. With a talent for staying up-to-date on the latest news and trends, Elizabeth is dedicated to delivering informative and engaging articles that keep readers informed on the latest developments.
