Snap Inc SNAP shares are tanking Wednesday on the heels of the company’s mixed fourth-quarter results. Here’s what you need to know.
What To Know: Snap said fourth-quarter revenue increased 5% year-over-year to $1.361 billion, which missed the consensus estimate of $1.38 billion, according to Benzinga Pro. The company reported quarterly adjusted earnings of 8 cents per share, which beat analyst estimates of 6 cents per share.
Operating cash flow came in at $165 million and free cash flow totaled $111 million during the quarter.
Daily active users grew 10% year-over-year to 414 million. Average revenue per user came in at $3.29. Total time spent watching Spotlight increased more than 175% year-over-year.
Snap didn’t provide formal guidance last quarter, citing headwinds related to the ongoing conflict in the Middle East. In a letter to shareholders this week, Spiegel noted that the Middle East conflict is estimated to have a two percentage point impact on year-over-year growth in the fourth quarter.
Snap expects first-quarter revenue of $1.095 billion to $1.135 billion versus estimates of $1.12 billion. First-quarter adjusted EBITDA is expected to be between negative $55 million and negative $99 million.
“As we enter Q1, we anticipate continued growth of our global community and, as a result, our guidance range is built on the assumption that DAU will be approximately 420 million in Q1,” the company said.
Following the print, Rosenblatt analyst Barton Crockett maintained Snap with a Neutral rating and raised the price target from $11 to $12.
See Also: Snap, Alibaba, Ford, Disney, Tesla: Why These 5 Stocks Are On Investors’ Radars Today
SNAP Price Action: Snap shares were down 30.4% at $12.14 at the time of writing Wednesday morning, according to Benzinga Pro.
Photo: Sergei Elagin from Shutterstock.
