February 7, 2022: -Snap reported its first quarterly net profit on Thursday and beat analyst estimates for the fourth quarter on earnings, revenue, and user growth.
The report comes after Facebook parent Meta delivered disappointing guidance for the first quarter that dragged down several social media stocks with it. Snap decreased 23.6% on Thursday before its earnings announcement but popped as much as 62% after hours before settling up about 52%.
It provided a Q1 guidance range of $1.03 billion to $1.08 billion, higher than the $1.01 billion analysts anticipated, according to Refinitiv. It expects daily active users amid 328 million and 330 million in the first quarter, which beats analyst estimates of 327.8 million, according to StreetAccount.
Snap has to contend with the same kind of headwinds as Meta, warning that it anticipates a $10 billion revenue reach in 2022 resulting from Apple’s privacy changes on iOS that make it harder to target consumers with advertiser content.
Snap distributes its app on Apple iPhones and serves advertising content to monetize its business. But Snap’s direct response advertising businesses experienced a recovery from the iOS changes “quicker than we anticipated,” according to prepared remarks for CFO Derek Anderson for the company’s analyst call.
In the Q&A period, Andersen said that Snap has been mindful of making privacy inherent to its products. As a result, the changes caused by the iOS changes are “likely to be experienced differently for our business than perhaps for others.”
Still, Anderson said in his opening commented that Snap still thinks “it will take a couple more quarters for our advertising partners to build full confidence in our new measurement solutions.”
In her prepared remarks, Chief Business Officer Jeremi Gorman said that the sales team is helping advertisers transition through the changes. Gorman said advertisers who tend to focus on “lower funnel goals” like in-app purchases had been most impacted, and few have migrated to “mid-funnel goals” such as installs or clicks, where there’s greater visibility despite the iOS changes.
Andersen pointed to macroeconomic forces like supply chain disruptions and labor challenges impacting advertisers and Snap’s brand advertising sector.
The most successful business leaders don’t just identify gaps in the market; they anticipate future needs before anyone else.
With technological advancements, shifting consumer expectations, and global interconnectedness, the role of business leaders
The leadership landscape is profoundly changing, influenced by technological advancements, shifting workforce expectations, and the need for adaptability in an unpredictable global environment.
In the fast-paced business world, corporate leaders often find themselves at the crossroads of risk and reward, where bold decisions …
Corporate leaders often navigate turbulent waters where failure is not just a possibility but an inevitable part of the journey …
Corporate leaders play a pivotal role in shaping organizational cultures that embrace diversity and foster inclusivity. How can these …
January 30, 2025: An American Airlines regional jet collided midair with a U.S. Army Black Hawk helicopter near Washington
January 29, 2025: A newly deployed AI chatbot in France has sparked widespread public debate, with concerns over misinformation
January 27, 2025: President Donald Trump’s administration has moved swiftly to dismantle diversity, equity, and inclusion (DEI)
January 23, 2025: A massive wildfire near Los Angeles has engulfed thousands of acres in a matter of hours, forcing tens of thousands to evacuate
Leave us a message
Subscribe
Fill the form our team will contact you
Advertise with us
Fill the form our team will contact you
