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Snap stock drops by 14 percent after the company unveils its Q4 2022 results
Posting a quarterly net loss of $288 million, Snap Inc. again has declined to give financial estimates for the next quarter as well.
Tech company Snap Inc. released its results for Q4 2022 and the overall year on January 31. The company's revenue stood at $1,300 million, compared to $1,298 million in the prior year. Net loss was reported at $288 million, including restructuring charges of $34 million, compared to net income of $23 million in the prior year. Losses for Q42022 stood at $233 million, compared to $327 million in the prior year.
For the full year, revenue rose 12% to $4.6 billion in 2022, compared to $4.1 billion in 2021. Net loss was $1,430 million in 2022, compared to $488 million in 2021. In its earnings statement, Snap said it wouldn’t provide guidance for the next period. Given uncertainties related to the operating environment, we are not providing our expectations for revenue or adjusted EBITDA for the first quarter of 2023.
However, reports say that the company's “internal forecast” assumes a decline of between 2% and 10% from a year earlier in an investor letter. The shares of the company dropped by 14% after the social media company reported fourth-quarter revenue, behind analysts’ estimates.
“On the monetisation side, we anticipate that the operating environment will remain challenging, as we expect the headwinds we have faced over the past year to persist throughout Q1,” the company said in the letter.
“We ended a challenging 2022 with 375 million Daily Active Users, 12% year-over-year annual revenue growth, and positive full year Free Cash Flow," Evan Spiegel, CEO, Snap, said in a press release. "We continue to face significant headwinds as we look to accelerate revenue growth, and we are making progress driving improved return on investment for advertisers and innovating to deepen the engagement of our community.
In Q4, the company's subscription service Snapchat+ reached over 2.0 million paying subscribers. In Q4 the company launched new features such as Custom Story Expiration and Custom Notification Sounds, providing subscribers with over 12 exclusive features.
Recently, reports found out that Snap's India unit profit doubled in FY22. The company's revenue from India grew from Rs 32.7 crore in FY21 to Rs 65.88 crore in FY22.