Shares of Snap Inc. (NYSE: SNAP) have been down 34% on Wednesday, a day after the corporate delivered blended outcomes for the fourth quarter of 2023. Revenues elevated year-over-year however missed expectations, whereas adjusted EPS surpassed estimates regardless of a decline from the earlier yr. Listed below are the primary takeaways from the earnings report:
Quarterly numbers
Snap’s income for This autumn 2023 elevated 5% year-over-year to $1.36 billion however missed estimates of $1.38 billion. GAAP internet loss was $248 million, or $0.15 per share, in comparison with $288 million, or $0.18 per share, final yr. Adjusted EPS fell 43% YoY to $0.08 however managed to surpass projections of $0.06.
The corporate’s brand-oriented promoting enterprise fell 3% YoY whereas its direct response promoting enterprise grew 3%. Snap recorded income development throughout all its geographic areas, with the best of 11% coming from Remainder of World.
Consumer development and engagement
Snap noticed its each day lively customers (DAUs) improve 10% year-over-year to succeed in 414 million within the fourth quarter. DAUs remained flat in North America at 100 million. In Europe, DAUs grew 4% to 96 million whereas in Remainder of World, DAUs rose 19% to 218 million.
Month-to-month lively customers (MAUs) elevated 8% YoY and crossed the 800 million milestone in This autumn. Common income per consumer (ARPU) decreased 5% YoY to $3.29. ARPU elevated by 2% and 5% respectively in North America and Europe, however declined 7% in Remainder of World.
Throughout the quarter, Snap witnessed development in total time spent watching content material globally, pushed primarily by time spent on Highlight. Whole time spent watching Highlight content material elevated over 175% YoY, whereas common MAU watching Highlight elevated over 35%.
In its report, the corporate mentioned that though it sees important long-term potential for group development in Remainder of World, it plans to presently deal with group development in its extra mature markets like North America and Europe.
Outlook
For the primary quarter of 2024, Snap expects revenues to vary between $1.09-1.13 billion, representing a YoY development of 11-15%. It has guided for adjusted EBITDA to be between unfavourable $55 million and unfavourable $95 million in Q1. The corporate expects DAUs to succeed in approx. 420 million in Q1.