Snap shares plunge on weak revenue as digital ad struggles continue
$Snap Inc(SNAP.US$ missed on revenue for the fourth quarter but beat on earnings.
Here’s how the company did:
Earnings per share: 14 cents, adjusted, versus 11 cents expected, according to a Refinitiv survey of analysts
Revenue: $1.30 billion versus $1.31 billion expected, according to Refinitiv
Global Daily Active Users (DAUs): 375 million versus 375.3 million expected, according to StreetAccount
Average revenue per user: $3.47 versus $3.49 expected, according to StreetAccount
Snap had a rough 2022 as a slowing economy led numerous companies to slash their digital ad budgets.
For a third straight quarter, the social media company is declining to provide guidance, though it says its “internal forecast” assumes a sales decline of between 2% and 10% from a year earlier.
Revenue: $1.30 billion versus $1.31 billion expected, according to Refinitiv
Global Daily Active Users (DAUs): 375 million versus 375.3 million expected, according to StreetAccount
Average revenue per user: $3.47 versus $3.49 expected, according to StreetAccount
Snap had a rough 2022 as a slowing economy led numerous companies to slash their digital ad budgets.
For a third straight quarter, the social media company is declining to provide guidance, though it says its “internal forecast” assumes a sales decline of between 2% and 10% from a year earlier.
It’s an ominous start to fourth-quarter earnings season for ad-supported internet companies. Investors will get a clearer picture of the state of that market later this week. Facebook parent Meta reports fourth-quarter results on Wednesday, followed by $Alphabet-A(GOOGL.US$ parent Alphabet and $Amazon(AMZN.US$ on Thursday.
Meta shares dropped 2% after Snap’s report. $Pinterest(PINS.US$, which releases results next week, fell almost 5%.
Meta shares dropped 2% after Snap’s report. $Pinterest(PINS.US$, which releases results next week, fell almost 5%.
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