Snapchat parent Snap (SNAP) will report its first quarter earnings after the bell on Thursday, with analysts and investors looking to see if the social media company can replicate the performance that rival Meta (META) turned in during its quarterly report on Wednesday.
Snap has been struggling amid a steep decline in advertiser spending, which has hammered the company’s earnings per share over the last few quarters. And Q1 isn’t shaping up to be much better for the firm.
Here’s what analysts are expecting from the company in the quarter versus how it performed in the same period last year, according to Bloomberg data.
-
Revenue: $1 billion expected versus $1.06 billion in Q1 2022
-
Adj. loss per share: $0.05 versus $0.02 in Q1 2022
-
Daily active users: 383.2 million versus 332 million in Q1 2022
-
Average revenue per user: $2.62 versus $3.20 in Q1 2022
Snap introduced Snapchat+ in June 2022 as a means of diversifying and boosting the platform’s revenue streams. The service, which costs $3.99 per month, provides subscribers with early access to new features, as well as experimental and exclusive content.
According to Snap, 3 million users have signed up since the service went live with an annual run rate of more than $100 million. But the majority of the company’s revenue still comes from advertising, and that’s taken a hit in the past few quarters as rising interest rates have squeezed corporate ad budgets.
Average revenue per user has slid precipitously for Snap, with the company reporting global ARPU of $3.47 in the fourth quarter of 2022, a decline of 14.5% compared to Q4 2021, when the company brought in $4.02 per user.
Revenue growth has fallen off of a cliff, with analysts expecting the company to report a 5% drop in revenue in Q1. Snap cut 20% of its workforce in the third quarter of 2022.
Meta, meanwhile, has managed to turn its fortunes around, reporting a return to revenue growth after three quarters of declines. The social media giant, which eliminated 21,000 positions since Nov. 2022, beat analysts’ expectations on the top and bottom lines in its latest earnings report.
By Daniel Howley, tech editor at Yahoo Finance. Follow him @DanielHowley
For the latest earnings reports and analysis, earnings whispers and expectations, and company earnings news, click here
Read the latest financial and business news from Yahoo Finance
