The group said new augmented reality lenses, personalised services and Snapchat trends for advertisers built around keywords and use of digital avatars helped build demand.
Snapchat’s daily active users climbed 23% year-over-year to 306 million, exceeding the forecast 301.8 million that could have provided some relief to the Snap stock price, However, its average revenue per user came in at $3.49 - lower than expectations of $3.67. The Snap stock price dived 27% after the Q3 announcement on 21 October. Its earnings per share of $0.17 beat forecasts of $0.08. In its third quarter Snap reported revenues of $1.07bn, up 57% but missing out on analysts’ expectations of $1.10bn. The Snap stock price could drop even further following the December quarter results, which mark a slowdown from the 57% revenue surge it recorded in Q3 and the 116% leap in Q2. In comparison, shares in its rivals Facebook and Google’s parent company Alphabet have risen 21.2% and 48.1%, respectively, over the same period. Though it has since risen to reach around $34 at the pre-market on 2 February, the Snapchat stock price has dropped 36.4% in the past 12 months. The Snap stock price has had a difficult start to 2022, reaching a 52-week low of $28.02 on 24 January. The iOS changes and supply chain issues have weighed on the Snapchat share price, which has also faced headwinds due to the switch in the market from growth to value amid concerns of higher inflation and potential interest rate hikes. Snap’s chief business officer Jeremi Gorman also warned that supply chain squeezes and rising costs were hitting revenues, resulting in a reduction in marketing spend. The blow to Snap’s profitability is partly due to Apple changing its iOS privacy features last year to require explicit permission to collect and share user data, making it more difficult for platforms like Snapchat to offer targeted advertising and pricing. Analysts polled by Zacks Equity Research forecast that the company will report revenues of $1.19bn and earnings per share of $0.09.
0 kommentar(er)
