Snap The shares skipped extended trading on Tuesday after the company reported on a better result of the fourth quarter.
Here’s how the company did compared to Wall Street expectations:
- Earnings per share: 16 cents adapted to 14 cents, according to LSEG
- Income: Expected $ 1.56 billion compared to $ 1.55 billion, according to LSEG
- Global Daily Active Users: A 453 million opposite 451.1 million were expected, according to the Streetaccount
- Global average revenue per user: $ 3,44 compared to $ 3.44 is expected, according to the Streetaccount
The revenue for the fourth quarter increased by 14% with $ 1.36 billion a year earlier. The net revenue in the quarter was $ 9.1 million or a penny of stake. In the previous year Snap taken Net loss in the fourth quarter of $ 248 million or 15 cents per share.
Snap said he expects revenue in the first quarter to reach between $ 1.325 billion and $ 1.36 billion. The middle point of this range is $ 1.34 billion, higher than screenings on Wall Street of $ 1.33 billion.
However, Snap’s earnings in the first quarter will range from $ 40 to $ 75 million, below the expectation of analysts in the amount of $ 78.5 million. In a letter to the investor, Snap attributed guidelines to “Investment Plans for a quarter”.
Operational expenses adapted to the first quarter will Raza from 11% to 12% compared to the year due to employment, the costs related to legal proceedings and “seasonal transition of marketing costs in Q1 compared to the previous year,” Snap said.
“As we look forward by 2025, we see the additional productive investment options for the scaling of our business with regard to the fundamental improvements we have made on our advertisement platform and the momentum we have established in our GO initiatives on the market,” Medium -sized enterprises, Snap said in a letter. “Our investment plans for 2025. They reflect this optimism, with a strong commitment to further financial progress towards profitability as we take the scale.”
In addition, the company said it had committed $ 5 million to “support communities and team members” affected by the recent Los Angeles wildlife and predict that “further obligations over time”.
In September, Attorney General in New Mexico submitted A lawsuit against Snap claimed that the Snapchat Company is the design and systems of “recommendation” openly encourage and promote an illegal sexual material that includes children and facilitates Sextbort and trade from children, drugs and weapons. “Earlier in January, Snap Share lowered After the Federal Commission for Trade announced that it would appeal against the company relating to my AI chatbot to the Ministry of Justice.
Last week, Target reported a quarter of a quarter results He beat up revenues and earnings and repeated his plans to spend greatly on investments related to AI. Alphabet Tuesday win on earnings but missed by revenues. Pinterest reports on Thursday earnings, followed by Reddit next week.
Snap said Daily Active users would be 459 million in the first quarter, which exceeded the expectations of analysts of 458.3 million.
The company has announced that his Snapchat+ service now has 14 million subscribers, which is more than 12 million reported during Third quarter. Service, which debut 2022 makes the majority of what Snap calls “other income.” This unit increased 131% in the year of the year 2024 and has a “annual revenue rate of more than $ 500 million,” the company said.
Evan Spiegel Executive Director told the call with analysts on Tuesday that he is satisfied with the response of the Snapchat+user, and the company may consider an increase in subscription price, which currently costs $ 3.99 a month.
Spiegel also commented on China with headquarters Deepseek’s breakthrough AI model This was supposedly cheaper and faster to build and work compared to other similar software from technological giants like Meta, Apcebet and Openi.
“It was really inspiring to see the innovation there,” Spiegel said. “I think that confirms our opinion that many of these models will eventually be comfortable.”
Last week, Meta CEO Mark Zuckerberg told analysts while calling for earnings that Meta was still digesting some of the options of deepseekBut he added that “it was probably too early that it would really have a strong opinion on what it means to the trajectory around the infrastructure and the captain,” which means that the target will not reduce its consumption of AI soon.
Considering whether Snap saw any influence from the questionable fate of Tiktoca to the United States, Spiegel said that “the whole environment of uncertainty benefits our business.” He said that both advertisers and creators want to “diversify” the social platforms they rely on, and Snap helps them plan.
Earlier this week, President Donald Trump signed an executive command The Government Fund of Sovereign Wealth is possible in detail, which he said could potentially be used to buy TICTOK’s US Operations from China based in China.
Snap said Ayit Mohan would become the CEO after he had previously performed the post of President of the Asian-Pacific region. Before joining Snap in 2023, Mohan was Vice President and General Director of India at Meta.
