Snap's Stock Crashes On Q4 Earnings: Revenue Miss, EPS Beat, Cautious Guidance And More
Portfolio Pulse from Adam Eckert
Snap Inc (NYSE:SNAP) reported Q4 earnings with a 5% year-over-year revenue increase to $1.361 billion, missing estimates of $1.38 billion. Adjusted EPS was 8 cents, beating the 6 cents estimate. Daily active users grew to 414 million, a 10% increase. Operating cash flow was $165 million, and free cash flow was $111 million. The company provided Q1 revenue guidance of $1.095 to $1.135 billion, below estimates of $1.12 billion, and anticipates an adjusted EBITDA between negative $55 million and negative $99 million. Shares dropped 30.6% after hours to $12.10.
February 06, 2024 | 9:34 pm
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Snap Inc reported a revenue increase but missed estimates, with an EPS beat. Q1 revenue guidance is below expectations, leading to a 30.6% drop in shares after hours.
The significant after-hours stock price drop of 30.6% is directly tied to the Q4 revenue miss and cautious Q1 guidance. The EPS beat was not enough to offset investor concerns, especially with the anticipated negative adjusted EBITDA. The guidance below analyst expectations suggests potential challenges ahead, impacting investor sentiment negatively.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100