Snap's stock plummets 30% on revenue miss, weak guidance

By Jon Swartz

Snap Inc.'s stock plunged more than 30% in extended trading Tuesday after the social-media company reported a revenue miss and offered weak guidance - a day after announcing yet more deep job cuts.

The results come a week after Facebook parent Meta Platforms Inc. (META) and Google parent (GOOGL) (GOOG) Alphabet Inc. racked up unusually brawny digital-ad sales.

Snap logged a net loss of $248.2 million, or 15 cents a share, compared with net income of $288.5 million, or 18 cents a share, in the same quarter a year ago. Adjusted earnings were 8 cents a share.

Snap's (SNAP) revenue did improve to $1.36 billion, from $1.3 billion a year ago.

Analysts surveyed by FactSet had expected on average adjusted earnings of 6 cents a share on revenue of $1.38 billion.

"While we are encouraged by the progress we are making with our ad platform and the improved results we are delivering for many of our advertising partners, we estimate that the onset of the conflict in the Middle East was a headwind to year-over-year growth of approximately 2 percentage points in Q4," the company said in a letter to investors.

Snap offered a revenue range of between $1.095 billion and $1.135 billion. FactSet analysts are expecting on average $1.12 billion in first-quarter revenue.

On Monday, Snap said it plans to slash about 10% of its 5,288-person workforce "to best position our business to execute on our highest priorities, and to ensure we have the capacity to invest incrementally to support our growth over time." Snap announced 20% layoffs in August 2022.

Read more: Snap to slash 10% of staff as tech layoffs continue

Snap also reported a 10% rise in daily active users, to 414 million.

Shares of Snap have advanced 43% over the past 12 months; the broader S&P 500 index SPX is up 19%.

-Jon Swartz

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02-06-24 1625ET

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