Snap Shares Up on Strong User Growth, While Earnings Miss Expectations
2022.04.22 00:12
Snap Shares Up on Strong User Growth, While Earnings Miss Expectations
After initially selling off following its earnings report, Snap (NYSE:SNAP) shares were trading around 6% higher following first-quarter results which showed better-than-expected user growth, while EPS of ($0.02) came in worse than the consensus estimate of $0.01.
Revenue grew 38% year-over-year to $1.06 billion, slightly lower than the consensus estimate of $1.07 billion. Daily Active Users increased by 52 million or 18% year-over-year to 332 million.
“Our first quarter results reflect the underlying momentum in our business through a challenging operating environment, as we grew our community 18% year-over-year to reach 332 million, and grew our revenue 38% year-over-year to reach $1.06 billion for the quarter,” CEO Evan Spiegel commented.
The company provided its Q2/22 outlook, expecting revenue growth to be 20-25% year-over-year and adjusted EBITDA to be between breakeven and $50 million.
Shares of SNAP are down 37% year-to-date.
By Davit Kirakosyan
