SNAP Earnings Prediction
The chart below shows how SNAP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SNAP sees a -1.68% change in stock price 10 days leading up to the earnings, and a -6.51% change 10 days following the report. On the earnings day itself, the stock moves by +1.96%. This data can give you a slight idea of what to expect for the next quarter's release.
SNAP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.56B
14.40%
13.46%
Gross Margin
56.87%
4.66%
6.40%
Operating Margin
-1.73%
-90.53%
-86.29%
Net Margin
0.58%
103.18%
-105.20%
EPS
0.01
106.67%
-111.11%
No Data Available
SNAP Earnings Analysis
Snap Inc Corporation (SNAP.N) Earnings Conference Call
Positive
User Growth Surge: Daily active users reached 453 million in Q4, an increase of 39 million year-over-year, indicating strong community growth.
Q4 Revenue Increase: Q4 revenue increased 14% year-over-year to $1.56 billion, driven by a 16% growth in direct response advertising revenue for the full year.
Adjusted EBITDA Performance: Adjusted EBITDA for Q4 was $276 million, reflecting a 60% flow-through rate from year-over-year revenue growth, showcasing improved profitability.
Positive Free Cash Flow: Free cash flow for Q4 was $182 million, contributing to a total of $219 million in free cash flow for the full year, marking the fourth consecutive year of positive free cash flow.
Subscriber Growth Surge: Snapchat+ subscribers grew from 7 million to 14 million in 2024, with other revenue, primarily from subscriptions, increasing 131% year-over-year to over $500 million annualized run rate.
Negative
Brand Advertising Revenue Decline: Brand-oriented advertising revenue was down 1% year-over-year, indicating continued weakness concentrated among a small group of large clients in North America.
North America Revenue Growth: North America revenue grew only 8% year-over-year, reflecting a lower rate of growth due to weaker large client upper funnel demand concentrated in this region.
Operating Expenses Increase: Adjusted operating expenses increased by 4% year-over-year to $612 million, driven by higher legal costs and product-related R&D costs despite a decrease in personnel costs.
Operating Expenses Increase: In Q1, adjusted operating expenses are expected to grow by 11% to 12% year-over-year, driven by increased headcount and higher legal-related costs, indicating ongoing financial pressure.
Infrastructure Cost Increase: Infrastructure costs increased by 9% year-over-year to $669 million, primarily due to ramped investments in machine learning and AI, which may impact future profitability.
SNAP FAQs
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SNAP Earning Call Sentiment
Snap Inc. (NYSE:SNAP) Q4 2024 Earnings Call Transcript
SNAP.N
-1.67%Positive
The earnings call highlights strong financial performance with significant growth in DAU, revenue, and free cash flow. The introduction of new ad placements and AI features demonstrates innovation, while the share repurchase program signals confidence. Despite some uncertainties in the Q&A, particularly around Simple Snapchat's impact, the overall sentiment is positive due to optimistic guidance and improved financial health, suggesting a likely stock price increase.
