SNAP Q4 Profit Report

Break The shares jumped in operations extended on Tuesday after the company reported better results than expected of the fourth quarter.

This is how the company did compared to the expectations of Wall Street:

• Profit per action: 16 tight cents compared to 14 expected cents, according to LSE
• Revenue: $ 1.56 billion compared to $ 1.55 billion expected, according to LSE
• Global daily active users: 453 million vs. 451.1 million expected, according to streetacount
• Average global income per user: $ 3.44 vs. $ 3.44 expected, according to Streetacount

Income for the fourth quarter increased 14% of $ 1.36 billion the previous year. The net income into the quarter was $ 9.1 million, or a penny per share. In the previous year, Snap recorded A net loss of the fourth quarter of $ 248 million, or 15 cents per share.

Snap said he expects the revenues of the first quarter to be between $ 1,325 billion and $ 1.36 billion. The midpoint of that range is $ 1.34 billion, higher than the projections of Wall Street of $ 1.33 billion.

However, the adjusted profits of the first quarter of SNAP will fall into the range of $ 40 million to $ 75 million, below the expectations of analysts of $ 78.5 million. In an investor letter, Snap attributed the guide to “investment plans for the ahead quarter.”

The adjusted operating expenses of the first quarter will grow in the range of 11% to 12% year after year due to hiring, the costs related to legal and “a seasonal change of marketing expenses in Q1 in relation to the previous year”, Snap said.

“As we look at 2025, we see additional opportunities to invest productively in the scale of our business given the fundamental improvements we have made on our advertising platform and the impulse we have established in our initiatives to go to the market”, particularly in the segment Centered small and medium enterprises, Snap said on the letter. “Our investment plans for 2025 reflect this optimism, along with a strong commitment to make greater financial progress towards profitability as scale.”

In addition, the company said it committed $ 5 million to “support the communities and members of the team” affected by recent Los Angeles forest fires and that anticipates “more commitments with time.”

In September, the attorney general of New Mexico filed A demand against SNAP that alleged that the design and recommendation systems of the company’s Snapchat application “openly foster and promote illicit sexual material that involves children and facilitates sextortion and the traffic of children, drugs and weapons. “In early January, Snap shares abandonment After the Federal Commerce Commission said it would refer to a complaint against the company related to its My AI Chatbot to the Department of Justice.

Last week, Goal reported fourth quarter results That exceeded income and profits and reiterated its plans to spend a lot on investments related to AI. Alphabet Tuesday defeat In earnings but was lost in income. Pinterest informs the profits on Thursday followed by Reddit Next week.

Snap said that daily active users for the first quarter will be 459 million, which will exceed the expectations of analysts of 458.3 million.

The company said its Snapchat+ service now has 14 million subscribers, above the 12 million it reported during the Third quarter. The service that debut In 2022, it constitutes most of what Snap calls “other income.” That unit grew 131% year after year in 2024 and has a “annualized revenue execution rate of more than $ 500 million,” said the company.

The Snap CEO, Evan Spiegel, said on a Tuesday call with analysts who is satisfied with the user’s response to Snapchat+ and the company may consider increasing its subscription price, which currently costs $ 3.99 per month.

Spiegel also commented on China Deepseek AI model It was supposedly cheaper and faster to build and operate compared to another similar software of technological giants such as goal, Alphabet and Openai.

“It has been really inspiring to see innovation there,” Spiegel said. “I think it validates our opinion that many of these models will continue to be merchants over time.”

Last week, Meta CEO, Mark Zuckerberg, told analysts during a gain call that target was still digesting some of Depseek’s capabilitiesBut he added that “it is probably too early to have a solid opinion about what this means for the trajectory around infrastructure and capex”, which means that goal will not reduce its expenditure from AI in the short term.

Regarding whether Snap has seen any impact of Tiktok questionable destiny in the United States, Spiegel said that “the general uncertainty environment is benefiting our business.” He said that both advertisers and creators are looking to “diversify” the social platforms in which they trust, and Snap is helping them with their planning.

Earl this week, President Donald Trump signed an executive order Detailing a possible background of sovereign wealth administered by the government, which according to him could be used to buy the American Tiktok operations of China with headquarters in China.

Snap said Ajit Mohan will become a business director after serving previously as president of the Asia-Pacific region. Before joining Snap in 2023, Mohan was vice president and managing director of India in Meta.

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