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Snap Shares Fall On Q4 Results

Snap reported a fourth quarter revenue and eps beat after hours Thursday.

· 02/04/2021 17:16

Snap reported a fourth quarter revenue and eps beat after hours Thursday.

What Happened: Fourth-quarter revenue of $911.3 million beat the Street consensus estimate of $857.4 million for Snap Inc (NYSE:SNAP). Revenue was up 62% year-over-year.

Earnings per share of 9 cents for the fourth quarter beat the Street consensus estimate of 7 cents.

Daily active users were up 22% year-over-year in the fourth quarter, hitting 265 million. Daily active users rose in the fourth quarter across the North America, Europe and Rest of World segments.

The average Snapchat user opened the app 30 times a day in the fourth quarter.

Shows and publisher content were watched by 90% of Gen Z users in the fourth quarter. Sports and lifestyle content from the company’s Wave.tv platform was seen by 64 million people in the quarter.

Related Link: Analyst Sees Snap Hitting $200B Valuation By 2025

What’s Next: Snap said it's investing in additional platforms like Discover and strengthening its advertising platform to monetize its user base.

Guidance from Snap calls for first-quarter revenue of $720 million to $740 million against a Street consensus estimate of $704.6 million and $462 million in the first quarter one year ago. 

SNAP Price Action: Shares of Snap were down 10.22% after-hours Thursday to $52.35.