Snap Q2 Earnings: Stock plunged 30% after disappointing results
Snap Q2 Earnings Key Highlights
Snap Inc. (SNAP), a 10-year-old social messaging company, reported its Q2 numbers and missed both top and bottom lines. Snap was the first of the major social media giants to report this earnings season. Let us look at the numbers:
Snap Q2 2022 Revenue below estimates: The revenue increased year on year to $1.11 billion compared to $982 million in the year-ago period. The revenue is below analysts' estimate of $1.14 billion.
Snap Q2 Results Net Income: The company reported its first quarter of the positive net income in Q4'21. However, it has failed to report a similar number for the last two quarters. The company said that it had a loss of 26 cents per share. Losses, adjusted for one-time gains and costs, came to 2 cents per share, compared to 1 cent analysts' expectation. Adjusted EBITDA came at $7 million in Q2 2022, compared to $117 million in the prior year.
Snap Q2 Cash Flow: Operating cash flow reported by Snap was $(186) million in Q2 2022, compared to $(101) million in the prior year. Free Cash Flow was $(147) million in Q2 2022, compared to $(116) million in the prior year.
Snap Q2 Earnings Active Users: Daily Active Users (DAUs) reported by the company was 347 million in Q2 2022, an increase of 54 million, or 18%, year-over-year. Year-over-year growth in DAUs has been 20% or more for five consecutive quarters. DAUs increased sequentially and year-over-year in each of North America, Europe, and the Rest of the World.
Snap Q2FY22 Content Offering: Total time spent watching Spotlight content grew 59% year-over-year. The daily average number of Snapchatters aged 25 and older engaging with shows and publisher content increased by more than 40% year-over-year.
Snap Quarterly Results Target Price: Based on analysts offering 12-month price targets for SNAP in the last 3 months. The average price target is $21.89 with a high estimate of $34 and a low estimate of $12.
Snap Q2 Earnings Outlook: The company withheld revenue and EBITDA guidance for Q3 due to uncertainties related to the operating environment.
In the pre-market, snap share price is down 27.71%.
How was Snap's Q2 FY22 result?
Snap has reported the Q2 number, both topline and bottom-line are below estimates.
What was the effect on the share price?
Snap crashed 30% after missing estimates. Advertisement revenues dipped considerably after Apple’s policy changes affecting growth in revenues. The management had to cut its outlook for the future citing several headwinds in relation to costs.
How can I buy SNAP shares?
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