Snap Benefits (SNAP) for the fourth quarter of 2020

Shares of shares fell more than 7% in trading after Thursday’s schedule after the company reported its fourth-quarter earnings despite exceeding Wall Street expectations on earnings, revenue and user growth. But the company provided a tight first-quarter EBITDA forecast that was well below analysts ’consensus expectations.

This is what they reported:

• Adjusted earnings per share: 9 cents against 7 cents per share provided by Refinitiv
• Income: $ 911 million compared to $ 857.4 million projected by Refinitiv
• Global Daily Active Users (SAD): 265 million versus 257.79 million for FactSet
• Average revenue per user (ARPU): $ 3.44 vs. $ 3.34 provided by FactSet

Snap pointed out that it would lose $ 50 million to $ 70 million based on adjusted EBITDA during the first quarter, very shy of analysts ’consensual expectations of an adjusted EBITDA profit of $ 19.3 million, according to Refinitiv.

The company’s net loss fell to $ 113 million, a drop of more than 53% from last year’s $ 241 million net loss.

Snap reported 265 million daily active users, up 6% from the 249 million the company reported in October. This figure increases by almost 22% compared to the 218 million daily users the company reported a year earlier.

Snap expects annual revenue growth of 56% to 60% during the first quarter, said Derek Andersen, chief financial officer of Snap, in prepared statements. The company also expects to reach approximately 275 million DAU in the first quarter, Andersen said.

However, the company’s performance in the first quarter could be affected by two key factors. First, Andersen noted that Snap experienced two weeks of disruption in advertising demand, as brand advertisers stopped campaigns during the period following the Jan. 6 insurgency at the U.S. Capitol.

“So we started the quarter slower than we would have expected otherwise,” Andersen said in his prepared comments.

In addition, Andersen warned that Apple’s privacy changes to iOS 14, which are expected to take effect in the late first quarter, “present another risk of disrupting demand.” These changes could affect the ability of social media companies to target ads to users.

“It is still unclear what the long-term impact of these changes may be for the final boost of our business, and it may not be clear until a few months or more after the implementation of the changes,” he said. say Andersen in his prepared statements.

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