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Snap Inc (NYSE: SNAP) is crashing in extended hours on Tuesday after reporting disappointing revenue for its fiscal fourth quarter related partially to the ongoing Israel-Hamas war.
The stock is being punished also because its management issued muted guidance for the future. Snap now expects revenue to fall between $1.095 billion and $1.135 billion in its current financial quarter.
Analysts, in comparison, were at $1.117 billion. Evan Spiegel – the chief executive of Snap Inc said in a press release today:
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.
Earlier this week, the social media giant announced plans of lowering its headcount by about 10% as Invezz reported here. Snap stock is up nearly 15% versus its year-to-date low at writing.
Watch here: https://www.youtube.com/embed/419xGfRpwb0?feature=oembedThe New York listed firm added 2.0 million new subscribers to Snapchat+ in Q4. The premium service now has 7.0 million subscribers in total. CEO Spiegel also said on Tuesday:
We are encouraged by the progress we are making with our ad platform and the improved results we are delivering for many of our advertising partners.
Snap Inc generated $3.29 in average revenue per user in its fourth quarter – also shy of estimates.
The social media giant expects a continued increase in daily active users to 420 million in its current quarter versus 419.3 million expected. Its letter to shareholders reads:
We begin 2024 focused on three initiatives we believe are essential for Snapchat’s long-term success. We are continuing to evolve our ML models … we are working to unify the content experience across Spotlight and Stories … we are shifting more of our focus toward user growth and deepening engagement.
Snap, however, forecasts EBIT loss on an adjusted basis of up to $95 million in Q1 – well above $21.9 million that analysts had forecast. Wall Street currently has a consensus “hold” rating on Snap stock.
The post Snap stock tanks 30% on Q4 earnings appeared first on Invezz
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