- Snap highlighted revenue and ARPU in its first-quarter earnings report.
- The company said its “internal forecast” for second-quarter revenue would be $1.04 billion, which is a 6% decline year-over-year.
Shares of Snap fell as much as 20 percent in after-hours Thursday, the company said First quarter results That missed analysts’ expectations for revenue.
Here’s how the company did:
- Earnings per share: 1 cent, adjusted, versus a loss of 1 cent expected, according to a Refinitiv poll of analysts.
- he won: $989 million versus the expected $1.01 billion, according to Refinitiv
- Global Daily Active Users (DAUs): 383m vs. 384m expected, according to StreetAccount
- Average revenue per user: $2.58 vs. $2.63 expected, according to StreetAccount
Although the company didn’t provide official guidance for the second quarter, it said in a letter to shareholders that its “internal forecast” for revenue would be $1.04 billion, which is a 6% year-over-year decline. Analysts had estimated that the second-quarter sales forecast would be $1.10 billion.
Like much larger competitors, including Facebook and Google, Snap continues to operate in a tough online advertising market as companies have slashed their marketing and promotional spending as the economy continues to fray.
But unlike these giant competitors, Snap doesn’t have a massive presence around the world to help run its tough digital advertising sector more smoothly.
Meta, for example, suffered three consecutive quarters of shrinking sales, but posted 3% year-over-year growth of $28.65 billion during the first quarter, thanks in part to Chinese companies spending a lot of money on Facebook to show ads to people around with it. the world.
He watches: Meta Q1 Earnings Was a ‘Big Force’
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