Snap Q1 2023 Earnings Report

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.

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