As a result, shares of SNAP stock are down 12.1% on Wednesday morning. Investors aren’t happy about Snap’s mixed earnings report today. The company says operating activities are keeping it from providing revenue or adjusted EBITDA guidance for Q1 2023. Making matters worse, Snap didn’t providing guidance in its latest earnings report. “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.” Snap’s Earnings Outlook Also, it’s roughly the same as Q4 2021.Įvan Spiegel, CEO of Snap, said the following in the earnings report: This came in below the $1.31 billion that analysts were expecting for the period. Unfortunately, investors in SNAP stock aren’t excited about the company’s Q4 revenue of $1.3 billion. However, it represents a 38% decrease from the 22 cents per share reported in the same period last year. That’s better than the 12 cents per share Wall Street was expecting for the quarter. The Snap earnings report starts with adjusted earnings per share of 14 cents. There will eventually come a time to remove the sad puppy filter from Snap stock and replace it with bull horns.Snap (NYSE: SNAP) stock is on the move Wednesday as investors react to the company’s earnings report for the fourth quarter of 2022. Investors may have ghosted the company, but advertisers can’t afford to. The key here is the value of Snap’s growing user base. Over time, a declining monetization per user metric could revert to an increasing one. Currently, the income statement is being held back by an unfortunate but fleeting reality - there are simply more players like TikTok going after a shallower ad spending pool. As management figures out new ways to monetize the business, the financials should match the impressive user growth. You can’t tell by looking at the stock chart, but Snap appears primed for a turnaround. With so many eyeballs on the platform and so many discussions taking place about things to buy and places to go, digital ad dollars are bound to head Snap’s way as the macro environment improves. I first put Spotify in the Danger Zone in April 2018 prior to its IPO, again in September 2020, and highlighted the micro-bubble in its stock in March 2021. In turn, Snap’s next-generation user base will be impossible for advertisers to ignore. This is a powerful statistic because it means the company has a stranglehold on most future consumers. In more than 20 countries, Snap reaches 90% of the 13-24-year-old population. Still gaining traction in the market, Chat, Spotlight and Snap Map are poised to become bigger parts of the multiyear growth story. Snap has stayed in the mix by evolving from its flagship offering to an ecosystem that’s really five platforms in one. They are capturing the creative minds of users globally and creating new revenue streams. New features like Lenses, Dynamic Stories and AR shopping are on trend with emerging technologies. This shows that Snap’s predominantly younger user base still loves the art of the selfie - and that the company is doing its part to keep the brand fresh and engagement high. Last quarter, daily active users rose by 57 million - a 19% year-over-year improvement. As they add news ones, others get kicked out - but not Snapchat. Social media users tend to use multiple apps. Even with the emergence of TikTok and other challengers, Snapchat is a mainstay. One overlooked constant during Snap’s plunge is the relevance of the platform in the post-pandemic economy. Still nowhere near the glory days, but re-accelerating growth should be a welcomed development. By the back half of next year, Wall Street sees 7% and 13% quarterly growth. While perceived as concerning by the market, this has formed a new base from which Snap can grow over the next few years.Īfter a likely setback again in Q4, revenue growth is forecast to pick back up in 2023. Last year’s quarterly revenue growth figures of 42% to 116% are being replaced by minimal growth like the 6% recorded in Q3. Addition of soy isolate improves gloss and snap, viscosity and enrobing. The good news is that comparisons to the hyper-growth period will soon fade away like a Snap video. I have made no attempt in this report to present detailed information received.
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