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Snap
The top and bottom lines for the fourth quarter exceeded Wall Street expectations on Thursday. But executives say 2021 will be a tumultuous year after a January disruption to advertising spending and technological change
Apple
implementation plans.
Snap stock (ticker: SNAP) was down 7.7% in the extended session. The shares retreated 1.6% during normal trading to close at $ 58.31.
Snap reported a net loss in the fourth quarter of $ 113.1 million, which is eight cents a share, compared to a loss of $ 240.7 million or 17 cents a share a year ago. Adjusted for stock compensation, among other things, earnings were nine cents per share. Wall Street had expected earnings of seven cents a share.
The company reported sales rose 62 percent to $ 911.3 million from $ 560.9 million a year ago. The consensus estimate of revenue was $ 856.1 million.
“We have delivered our first full year of adjusted Ebitda profitability and as we look to the future, we are excited to rely on our augmented reality investments, mapping and content to drive our continued growth,” said CEO Evan Spiegel .
Ebitda – earnings before interest, taxes, depreciation and amortization – is a measure of profitability that is not GAAP compliant.
In their comments, the directors attributed the company’s growth gains outside the US and the improvements to its advertising technology. Business director Jeremi Gorman said direct response advertising remained constant throughout the year.
The daily number of Snap members increased to 265 million, well above the consensual prediction of 257.9 million.
However, the next quarter can be more of a challenge. In prepared statements, Chief Financial Officer Derek Anderson said Snap experienced an “interruption period” in the first two weeks of January due to the violent attack on the US Capitol. An undisclosed number of brands discontinued advertising during that period.
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Facebook
Guiding (FB), Anderson warned Snap investors about a technological change in Apple’s mobile operating system (AAPL) that could affect ad targeting. Anderson said it was unclear what impact the long-term technological changes would have.
Apple said its adjustment will help protect customer privacy, an argument that Facebook said is not genuine.
Despite failures since the beginning of the year, Spiegel said Snap expects to make further progress in terms of profitability and increase revenue by more than 46%, the amount Snap increased sales for the whole of last year.
The company expects sales in the first quarter between 720 and 740 million dollars. Analysts modeled a first-quarter adjusted loss of two cents a share on sales of $ 705.1 million.
Write to Max A. Cherney at [email protected]