First Quarter 2023 Earnings Report


Snap shares fell as much as 20% after hours on Thursday, as the company reported first quarter results which missed analysts’ earnings expectations.

Here’s how the company did it:

  • Earnings per share: 1 cent, adjusted, vs. 1 cent loss expected, according to Refinitiv analyst survey
  • Income: $989 million vs $1.01 billion expected, according to Refinitiv
  • Global Daily Active Users (DAU): 383 million against 384 million expected, according to StreetAccount
  • Average revenue per user: $2.58 vs $2.63 expected, according to StreetAccount

Although the company did not provide official guidance for the second quarter, it said in a letter to shareholders that its “internal guidance” for revenue would be $1.04 billion, a decline of 6% from one year to the next. Analysts estimated the second quarter sales forecast to be $1.10 billion.

Snap’s first-quarter revenue fell 7% from $1.06 billion in the year-ago period, while net loss fell to $359.6 billion, or 21 cents per share, in the first quarter of 2022 at $328.7 billion, or 22 cents per share.

The company’s free cash flow was $103 million in the first quarter, down nearly 3% year over year.

“We are focused on accelerating our revenue growth and are taking this opportunity to make significant enhancements to our advertising platform to increase the return on investment for our advertising partners,” said Snap CEO Evan Spiegel. , in a press release.

Like much bigger rivals, including Facebook And GoogleSnap continues to operate in a tough online advertising market in which companies have cut spending on marketing and promotions as the economy remains fragile.

But unlike those giant rivals, Snap doesn’t have the huge global presence to help manage the difficult digital advertising industry more easily.

For example, Meta suffered three consecutive quarters of declining sales, but saw 3% year-over-year growth of $28.65 billion in the first quarter, thanks in part to Chinese companies that spend a lot of money on Facebook to serve ads to people around. the world.

Show: Meta Q1 earnings were a “tour de force”

Meta Q1 earnings were a

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