Snap revenue misses Wall Street estimates by 5%
Despite this growth, the figure fell slightly below Wall Street analysts’ forecasts. They had expected $1.38 billion for Snapchat’s parent company.
Despite this growth, the figure fell slightly below Wall Street analysts’ forecasts, who had anticipated $1.38 billion for Snapchat’s parent company.
However, Q4 saw net losses narrowed to $248 million, showing improvement from the $288 million reported in the same period the previous year.
Lay offs. Snap’s disappointing results are the result of layoffs that took place earlier this week. Snap’s new advertising strategy. Spiegel said that this shift led to lower sales during the first half of last year but would benefit Snap’s ad business over time. Takeaways.
Snap has shared additional insights into its 2023 performance:Daily Active Users increased 10% year-over-year to 414 million.
Fourth quarter revenue increased 5% year-over-year to $1,361 million.Fourth quarter operating cash flow of $165 million and Free Cash Flow of $111 million.
- Looking ahead. Snapchat expects to have 420 million daily active users in the first quarter this year. Revenue is expected to rise between 11% and 15 percent.
- Evan Spiegel, Snap CEO, said in a statement:
- “2023 was a pivotal year for Snap, as we transformed our advertising business and continued to expand our global community, reaching 414 million daily active users.”
“Snapchat enhances relationships with friends, family, and the world, and this unique value proposition has provided a strong foundation to build our business for long-term growth.”Why we care. After a quarter of below-expected performance, Snapchat could present an opportunity to advertisers. A possible drop in interest from advertisers could lead to reduced competition and more cost-effective ad placements. It also offers advertisers a chance to get a better return on their ad spending. Get the daily newsletter that search marketers depend on.
Deep diving. Read the full from Snapchat for more information.