Snap lives up to its name as shares snap back in a huge way on upbeat earnings
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Snap (NYSE:SNAP) snapped back from a day of losses, Thursday, as the social-media company's shares surged more than 50% in after-hours trading following a quarterly report that blew away Wall Street analysts' estimates.
Snap (SNAP) said that for its fiscal fourth quarter it earned $0.22 a share, excluding one-time items, on revenue of $1.3 billion, compared to a profit of $0.09 a share, on $911.3 million in sales in the year-ago period. The company's results surpassed analysts' consensus forecasts for a profit of $0.19 a share, on $1.2 billion in revenue.
During the quarter, Snap (SNAP) said user engagement showed more strength, as daily active users, one of the company's main gauges of its performance, rose by 20% from a year ago, to 319 million users. Snap (SNAP) said daily average users also grew in its North American, European and rest of the world locations both sequentially and on a year-over-year basis.
Advertising appeared to remain strong for Snap (SNAP), as the company rolled out several new platforms and programs for advertisers during the quarter, including allowing advertisers to utilize a single set of ads across different and multiple ad formats, and for Snap (SNAP) to optimize the delivery of ads.
Snap (SNAP) also said that for the first quarter of 2022 it expects revenue to be between $1.03 billion and $1.08 billion. That range represents an increase of as much as 40% over the $770 million in sales that Snap (SNAP) recorded in the first quarter of 2021.
The positive reaction to Snap's (SNAP) results was enough to completely make up for the company's shares dropping more than 23% in the regular market session. Those losses resulted from residual reaction to Facebook's Meta Platforms (NASDAQ:FB) turning in a disappointing quarterly report and outlook on Wednesday. Meta's (FB) own shares fell more than 27%, Thursday, to erase more than $200 billion from the social-media kingpin's market capitalization.
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