Snap stock crashes 30% after projecting higher-than-expected loss for Q1 By Investing.com



© Reuters. Snap (SNAP) stock crashes 30% after projecting higher-than-expected loss for Q1

Snap Inc .’s (NYSE:) shares nosedived 31% in after-hours trading Tuesday after the company missed revenue expectations in Q4 and forecasted a wider-than-expected EBITDA loss for the March quarter.

For Q4, the social media company posted adjusted earnings per share (EPS) of 8c, compared to 14c in the year-ago period and the 6.4c expected by analysts. Revenue came in at $1.36 billion, up 4.7% year-over-year but below the consensus estimates of $1.38 billion.

The company’s revenue in the North America region stood at $899.5 million, up 2.2% YoY, and ahead of the projected $875.9 million.

Adjusted EBITDA was reported at $159.1 million, down 32% YoY and better than the expected $111.8 million.

Snap reported 414 million daily active users (DAUs) for the quarter, up 10% from the year-ago period, and compared to 411.59 million consensus. Average revenue per user fell 5.2% YoY to $3.29, and missed the expectations of $3.33.

The firm’s free cash flow for the quarter rose 41% from last year to $110.9 million, while analysts guided for $82 million.

For the fiscal Q1, Snap expects revenue in the range of $1.10 billion to $1.14 billion, compared to the consensus projection of $1.11 billion.

Adjusted EBITDA loss is projected to range between $55 million and $95 million, significantly above the estimated $32.7 million.

Snap expects 420 million DAUs in the first quarter, exceeding the forecasted 418.55 million.

“We estimate that the onset of the conflict in the Middle East was a headwind to year-over-year growth of approximately 2 percentage points in Q4,” the company said in the statement.



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