- Snap’s 2Q revenue forecast is predicted to range from $1.23 billion to $1.26 billion, surpassing the estimated $1.21 billion.
- Forecasts a boost in the adjusted Ebitda between $15 million to $45 million, an increase from the anticipated $10.6 million.
- Daily active users are projected to grow to about 431 million, more than the previously estimated 429.06 million.
- The first quarter results showed a 21% increase in revenue with a total of $1.19 billion, higher than the anticipated $1.12 billion.
- North America revenue increased by 16%, reaching $743.1 million, higher than the estimated $707.4 million.
- The Europe sector experienced a 24% surge in revenue amounting to $195.8 million, surpassing the $179.6 million forecast.
- Revenue from the rest of the world increased by 34% to $255.8 million, higher than the anticipated $223.3 million.
- Adjusted earnings per share (EPS) came in at 3.0 cents vs the estimated loss per share of 4.8 cents.
- For daily active users, there was a 10% year-over-year growth totaling 422 million users, exceeding the estimated 419.83 million users.
- Average revenue per user increased by 9.7% to $2.83, which was higher than the expected $2.66.
- The number of employees decreased by 7% year-over-year to 4,835, which is below the estimated 5,021.
- Lastly, the company sees limited opportunity to reduce operating expenses below $2.425 billion to $2.525 billion. They rather plan to sustain higher rates of revenue growth into the second half of 2024 and invest prudently to support that growth.
Snap on Smartkarma
In recent analyst coverage on Smartkarma, Baptista Research has provided insights on Snap-on Incorporated and Snap Inc. Baptista Research‘s report on Snap-on Incorporated, titled “Snap-on Incorporated: Strategic Product Shifts & 5 Factors Driving Their Performance In 2024! – Financial Forecasts,” highlights the company’s ability to adapt to market disruptions despite concerns over changing customer perspectives. In the Fourth Quarter and Full Year 2023 Results, Snap-on Incorporated reported a 3.5% increase in sales, reaching $1.2 billion, with a 2.2% rise in organic sales, indicating resilience in a challenging market environment.
Moreover, Baptista Research‘s analysis of Snap Inc. in the report “Snap Inc: Can Its Optimization Of Machine Learning (ML) Models for Advertising Change The Game? – Major Drivers,” applauds the company’s strategic efforts in enhancing user engagement. Snap Inc. saw a substantial growth in monthly active users by 8% year-over-year, surpassing 800 million, while daily active users increased by 10% to 414 million. These positive metrics signify progress towards Snap Inc.’s goal of reaching 1 billion monthly active users, showcasing promising developments for the company’s future performance.
A look at Snap Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Snap Inc. has a mixed outlook for the long term. With a Value score of 2, the company is considered fairly valued in the market. However, its Dividend score of 1 indicates that it does not offer significant dividend returns to investors. On the positive side, Snap scores a 3 in both Growth and Resilience, suggesting good potential for future expansion and the ability to weather economic uncertainties. The company’s Momentum score of 2 reflects a moderate upward trend in its stock performance.
Snap Inc. operates in the technology and social media sector, offering mobile camera application products and services globally. Despite facing some valuation challenges and not being a strong contender for dividend investors, the company shows promise in terms of growth and resilience. Investors may find Snap appealing for its growth prospects and ability to adapt to changing market conditions, although it may not be the top choice for those seeking high dividend returns.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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