Snap revenue rises 5%, misses Wall Street expectations

Snap Inc. reported a 5% increase in revenue for the final quarter of last year, reaching $1.36 billion, but fell slightly below Wall Street analysts’ forecasts. The company’s net losses narrowed to $248 million, an improvement from the previous year. This disappointing performance comes after Snap laid off 10% of its workforce, and the company changed its advertising strategy to focus more on direct response ads, leading to lower sales initially but expected to benefit the company’s advertising business in the long run. In 2023, daily active users increased 10% year-over-year to 414 million, and the company is predicting further growth in the first quarter of this year. Snap CEO Evan Spiegel expressed optimism about the performance and the potential for long-term growth for the company. Following the performance, Snapchat may present a unique opportunity for advertisers this quarter, with the potential for reduced competition and more cost-effective ad placements, but also a riskier investment compared to rival platforms like Meta.

Comments

There are no comments yet.

Leave a comment