Snapchat founder and CEO Evan Spiegel attends a session during the VIVA technology show in Paris on June 17, 2022.
Eric Piermont | AFP | Getty Images
crackle Shares fell 13% in extended trading Tuesday after the social media company reported fourth-quarter revenue that beat analysts’ estimates.
Here’s how the company did:
- earnings per share$0.14, adjusted, compared with the $0.11 expected, according to a Refinitiv poll of analysts.
- Revenue: $1.30 billion vs. $1.31 billion expected, 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 a year ago. like social media friends meta and Twitter, it was about 2022 for Snap, as a slowing economy prompted businesses to reduce their digital advertising budgets and of apple iOS Privacy Update Limited Targeting Capabilities.
In a letter to investors, Snap called it a “challenging year” that was marked by “macroeconomic headwinds, platform policy changes and increased competition.”
For the full year, sales are projected to grow 12% to $4.6 billion in 2022. And for the third straight quarter, Snap said it would not provide guidance for the next period.
“On the monetization side, we anticipate that the operating environment will remain challenging, as we expect the headwinds we faced during the past year to persist throughout the first quarter,” the company said in the letter. “
It’s an inauspicious start to the fourth-quarter earnings season for advertising-supported Internet companies. investors will get clear picture The state of the online advertising market this weekend. Facebook parent Meta reported fourth-quarter results on Wednesday, after Alphabet And Amazon on Thursday.
Meta shares fell 2% after Snap’s report. pinterestWhich releases results the following week, fell about 5%.
Snap’s stock plunged 81% last year as the Nasdaq had its worst year since 2008. The stock has recouped some of its losses, surging 29% in January on the back of a broader rally in tech.
Snap said it is focusing the investment on growing its community and engagement, accelerating and diversifying its sales growth, and focusing on the development of augmented reality technologies.
The company said that its Snapchat+ service now has more than two million paying customers as of the fourth quarter. crackle started Its subscription service last summer, offering it as a way for users to access pre-releases and exclusive features for $3.99 per month.
As executives told analysts several times last year, the company’s online advertising platform was built to be easy to use and enable brands to quickly launch campaigns. But its simplicity also meant that companies could quickly shelve campaigns, severely impacting Snap’s finances.
crackle announced In August it will lay off 20% of its workforce of more than 6,000 employees. The company also shelved several projects during the year, including its photo-taking drone and Snap Originals premium show.