Snap shares down 30% after earnings fall short of estimates
Make us a preferred source
Make us a preferred source on Google
The news: Shares in Snap plunged over 30% in after-hours trading on the Nasdaq, despite reporting a 5% revenue increase in its quarterly earnings.
The numbers: The Snapchat owner posted revenue of USD1.36 billion ($2.08 billion) for the quarter to December, up from USD1.3 billion in the previous corresponding period. However, the result fell short of Wall Street estimates of USD1.38 billion for the quarter. Net losses for the three months were down from USD288 million to USD248 million compared to the year-ago period.
Other positive results for the California-based firm included a 10% uplift in daily active users compared to last year's fourth quarter, while monthly active users increased by 8% and passed 800 million.
The context: On Monday, Snap cut around 528 employees, equivalent to 10% of its global workforce after struggling to maintain consistent revenue growth and compete with rivals such as Facebook-owner Meta Platforms.
What they said: Snap CEO Evan Spiegel said: “2023 was a pivotal year for Snap, as we focused relentlessly on adding value to our community while evolving our business for long-term growth".
The source: Snap media release
