Snap Inc. (NYSE: SNAP) reported its financial results for the fiscal fourth quarter on Thursday that topped analysts’ estimates for profit and revenue. The company, however, warned that advertising could take a hit in upcoming months as Apple Inc. launches its new operating system.
Snap shares, that you can learn to buy online here, were reported roughly 8% down in after-hours trading on Thursday. Including the price action, the stock is now exchanging hands at £39.39 per share. In comparison, it had plummeted to as low as £6.12 per share in March 2020 when the impact of the ongoing Coronavirus pandemic was at its peak.
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Snap’s Q4 financial results versus analysts’ estimates
Snap said that it concluded the fourth quarter with £82.64 million of net loss that translates to 5.85 pence per share versus a slightly narrower 5.11 pence per share expected. The social media company valued its revenue in Q4 at £665.65 million that represents a 62% year over year growth.
On an adjusted basis, Snap made 6.58 pence of profit per share in the recent quarter. The U.S. company said that its adjusted EBITDA in fiscal 2020 came in line with its target of £32.88 million. According to FactSet, experts had forecast the company to report £622.54 million of revenue in the fourth quarter. Their estimate for adjusted per-share profit stood at a lower 5.11 pence per share.
The Santa Monica-based company boasted 100 million users for “Spotlight” in January. Snap had 265 million daily active users (DAUs) on average in Q4 that translates to a 22% annualised growth and topped FactSet Consensus of 257.8 million. Snap’s performance in the prior quarter (Q3) had also come in better than expected.
Snap’s guidance for the fiscal first quarter
For the fiscal first quarter, Snap now forecasts its revenue to fall in the range of £526.09 million to £540.71 million. Analysts, on the other hand, are calling for £511.48 million of revenue in Q1. CEO Evan Spiegel commented on the earnings report on Thursday and said:
“As the global health crisis is addressed, and the world begins to reopen, we see opportunities to help strengthen the bonds of the Snapchat community all over the world.”
Snap performed largely upbeat in the stock market last year with an annual gain of more than 200%. At the time of writing, the American camera and social media company is valued at £63.48 billion.