Social media company Snap’s (SNAP) stock is falling today after it missed Wall Street expectations for its quarterly earnings.
Snap’s earnings per share (EPS) came in at a loss of two cents U.S. versus expected earnings of one cent U.S, according to Refinitiv data. Revenue amounted to $1.06 billion U.S. versus $1.07 billion U.S. expected.
The company behind the popular Snapchat platform said that its Global Daily Active Users (DAUs) totaled 332 million compared to 330 million that was expected, up 18% year-over-year. Also, Snap’s Average Revenue per User (ARPU) equalled $3.20 versus $3.25 expected, up 16.8% year-over-year.
Snap said it expected its June quarter revenue to rise between 20% and 25%, lower than Wall Street’s estimate of 28%. It forecasts daily users at about 344 million, ahead of expectations of 341.4 million.
Although the company’s overall revenue increased 38% year-over-year, Snap reported a bigger net loss and less free cash flow on an annual basis during the quarter ended March 31.
Snap is facing challenges related to Apple’s 2021 privacy change that makes it harder to target and measure ads on iPhones. The company said that the tool it created to improve the issue now accounts for 90% of the company’s direct response advertising revenue.
Snap stock is down about 1% in premarket trading. So far this year, the company’s share price has declined 37% to $29.42 a share.
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