Core Insights - The performance of Snap's international operations is critical for understanding its financial strength and growth potential [1][2] - The company's reliance on international markets is increasingly important for investors, as it provides insights into sustainability of earnings and growth potential [2][3] Revenue Performance - Snap's total revenue for the last quarter reached $1.56 billion, reflecting a 14.4% increase from the previous year [4] - Revenue from Europe was $287.03 million, accounting for 18.43% of total revenue, which was a slight miss compared to expectations [5] - The Rest of World segment generated $301.31 million, representing 19.35% of total revenue, exceeding analyst projections by 4.67% [6] Future Projections - Analysts project Snap will generate $1.35 billion in revenue for the ongoing fiscal quarter, a 12.6% increase year-over-year, with contributions from Europe and Rest of World expected to be $231.46 million and $319.4 million, respectively [7] - For the full year, total revenue is expected to reach $6.1 billion, up 13.9% from the previous year, with Europe and Rest of World contributing $1.13 billion and $1.33 billion, respectively [8] Market Dynamics - Snap's reliance on international markets presents both opportunities and challenges, making it essential to track international revenue trends for future projections [9][10] - The complexities of global interdependence and geopolitical risks are closely monitored by analysts to adjust earnings forecasts [10] Stock Performance - Snap's stock has declined by 12.4% over the past month, contrasting with a 2.1% increase in the S&P 500 [13] - Over the past three months, Snap's shares increased by 3%, while the S&P 500 rose by 1.2% [13]

Core Insights - Snap has faced challenges due to Apple's privacy changes but has recently reported strong financial results, indicating a potential turnaround for the company [2][10] - The company has implemented innovative advertising strategies that are attracting more advertisers and improving revenue growth [3][6] Financial Performance - Snap generated a record $5.3 billion in total revenue for 2024, marking a 16% increase from the previous year, the fastest growth rate since 2021 [7] - The company reported a non-GAAP profit of $487.1 million in 2024, a 238% increase compared to 2023, despite a GAAP loss of $697.8 million, which was a 49% reduction from the previous year's loss [10] Advertising Strategy - Snap has shifted focus to direct response ads, which encourage specific user actions, leading to better outcomes for advertisers [3] - The introduction of the 7/0 Optimization model has allowed businesses to optimize ad spending effectively, resulting in significant improvements in campaign performance [4][5] User Growth and Engagement - Snap finished 2024 with a record 453 million daily active users, continuing to grow each quarter, which enhances its attractiveness to advertisers [13] - The number of active advertisers on Snap's platform doubled in 2024, driven by tools that cater to small and mid-sized businesses [6] Subscription Revenue - The Snapchat+ subscription service reached 14 million subscribers by the end of 2024, contributing significantly to Snap's "other" revenue, which increased by 131% [9] - The subscription service has achieved an annual revenue run rate of $500 million [9] Valuation Metrics - Snap's current price-to-sales (P/S) ratio is 3.7, near its lowest level since going public in 2017, making it cheaper compared to rivals like Meta Platforms and Pinterest [11][12]

Core Insights - Snap Inc. reported strong fourth-quarter results with revenues of $1.56 billion, a 14% year-over-year increase, and achieved its first quarterly profit of $9 million since going public, compared to a $248 million loss in the same quarter last year [1][2] - Despite these achievements, the stock declined over 8% due to mixed guidance for Q1 2025 and broader market uncertainties, leading to a 6.8% drop in stock price over the past year [2][12] Financial Performance - Daily active users reached 453 million, a 9% year-over-year increase, and Average Revenue Per User (ARPU) grew to $3.44 [5] - Snapchat+ subscribers doubled to 14 million, contributing to an annualized revenue run rate exceeding $500 million [5] - The company has a strong financial position with $3.4 billion in cash and marketable securities and minimal debt maturing in 2025 [13] Market Position and Competition - Snap's stock has underperformed compared to the Zacks Computer and Technology sector, which returned 23.5% [2] - The company faces intense competition from tech giants like Meta Platforms and Alphabet, alongside macroeconomic pressures affecting advertising spend [8] Strategic Initiatives - Snap is focusing on several growth drivers, including the rollout of Simple Snapchat, expansion of Sponsored Snaps and Promoted Places ad formats, and enhancing machine learning infrastructure for better ad interactions [7] - The company is investing in its AR developer ecosystem, with over 375,000 creators building more than four million lenses [7] Challenges and Outlook - Brand advertising revenues declined 1% year-over-year, and the company’s advertising remains concentrated among a small group of large clients in North America [8] - For Q1 2025, Snap projects revenues between $1.325 billion and $1.360 billion, with adjusted EBITDA estimated between $40 million and $75 million [12] Investment Considerations - The current market environment and mixed outlook suggest that investors should remain patient before establishing new positions in Snap stock [15][18] - Monitoring the TikTok situation, sustained profitability, and the success of new revenue initiatives will be critical for future investment decisions [17][18]

Core Insights - Snap's CEO Evan Spiegel indicated that the company is benefiting from the uncertainty surrounding TikTok's future in the United States [1][5] - Snap reported an increase in daily active users to 453 million in Q4, representing a 9% year-over-year growth [1][5] - The company experienced a notable traffic boost during TikTok's brief service interruption on January 19 [1][5] User Engagement and Growth - Snap's daily active user count rose to 453 million in Q4, attributed partly to TikTok's uncertain status [1][5] - The number of creators posting on Snapchat increased by 40% year-over-year in Q4, driven by the Snap Star program [4] - Over one billion Snaps were shared publicly on Snapchat each month in Q4 from the community, creators, and media partners [4] Market Environment - Spiegel noted that while Snap is not overly focused on the engagement spike during TikTok's outage, the overall volatility in the short-form video space is advantageous for Snap in the long run [3] - The uncertainty surrounding TikTok's operations is perceived as beneficial for Snap's business strategy [5]

Snap Inc. SNAP shares are trading lower following fourth-quarter financial results reported on Tuesday and several analysts revised the price forecast.Snap reported quarterly earnings of 16 cents per share, which beat the analyst consensus estimate of 14 cents. Quarterly revenue came in at $1.55 billion, which beat the analyst consensus estimate of $1.54 billion.BofA Securities analyst Justin Post maintained the stock with a Neutral and raised the price forecast from $14 to $14.5.The analyst remains cautiou ...

Snap Inc. (NYSE: SNAP ) reported better-than-expected earnings for its fourth fiscal quarter on Tuesday: the social media company saw continual momentum in daily active users and saw strong monetization trends in the core advertisingAnalyst’s Disclosure: I/we have a beneficial long position in the shares of SNAP, META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Al ...

Snap (SNAP) reported fourth-quarter 2024 earnings of 16 cents per share, which beat the Zacks Consensus Estimate by 14.29% and increased 100% from the year-ago quarter. SNAP stock jumped more than 5% in pre-market trading.Revenues increased 14.4% year over year to $1.55 billion and beat the Zacks Consensus Estimate by 0.55%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Geographically, revenues from North America (62.2% of total revenues) rose 7.7% year over year to $968.9 million. R ...

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...

Financial Position - As of December 31, 2024, the company had cash and cash equivalents totaling $1.0 billion and marketable securities totaling $2.3 billion[426]. - The company had cash and cash equivalents of $1.8 billion as of December 31, 2023, indicating a decrease of approximately 44.4% year-over-year[426]. - The company ended the year with cash, cash equivalents, and restricted cash totaling $1,050,234,000, a decrease from $1,782,462,000 at the end of 2023[468]. - Total assets decreased slightly to $7,936,348 thousand in 2024 from $7,967,758 thousand in 2023, representing a decline of approximately 0.39%[476]. - Cash and cash equivalents decreased significantly from $1,780,400 thousand in 2023 to $1,046,534 thousand in 2024, a reduction of about 41.1%[476]. - Total liabilities decreased to $5,485,587 thousand in 2024 from $5,553,646 thousand in 2023, a decrease of approximately 1.22%[476]. - Stockholders' equity increased to $2,450,761 thousand in 2024 from $2,414,112 thousand in 2023, an increase of about 1.51%[476]. - The accumulated deficit increased from $11,726,536 thousand in 2023 to $12,735,461 thousand in 2024, reflecting a loss of $1,008,925 thousand[478]. Revenue and Expenses - Total revenue for 2024 was $5,361,398,000, an increase of 16.4% compared to $4,606,115,000 in 2023[470]. - The company incurred total costs and expenses of $6,148,692,000 in 2024, up from $6,004,494,000 in 2023, marking a 2.4% increase[470]. - Operating loss decreased to $787,294,000 in 2024 from $1,398,379,000 in 2023, reflecting a 43.6% reduction in operating losses[470]. - Cash flows from operating activities generated $413,480,000 in 2024, compared to $246,521,000 in 2023, indicating a 67.6% increase[468]. - Research and development expenses were $1,691,683,000 in 2024, down 11.5% from $1,910,862,000 in 2023[470]. - Advertising costs rose significantly to $57.7 million in 2024 from $24.9 million in 2023, marking an increase of approximately 131.3%[489]. Net Loss and Earnings Per Share - The company reported a net loss of $697,856,000 for the year ended December 31, 2024, a decrease from a net loss of $1,322,485,000 in 2023, representing a 47.3% improvement year-over-year[470]. - The net loss attributable to common stockholders for the year ended December 31, 2024, was $590.96 million, compared to a net loss of $1.11 billion in 2023[540]. - Basic net loss per share for 2024 was $(0.42), consistent with the previous year[540]. - The weighted average shares used in the computation of net loss per share increased to 1,659,147,000 in 2024 from 1,612,504,000 in 2023[470]. Investments and Securities - The company reported total strategic investments with carrying values of $188.3 million as of December 31, 2024, down from $195.3 million in 2023[437]. - The company’s investments in publicly traded equity securities had carrying values of $12.4 million as of December 31, 2024, down from $13.6 million in 2023[437]. - The total fair value of RSUs and RSAs vested in 2024 was $0.9 billion, down from $1.0 billion in 2023[547]. - The total net gains (losses) on publicly traded equity securities for 2024 were $(1.185) million, a decrease from $(6.685) million in 2023[615]. Debt and Financing - The company issued the 2030 Notes with an aggregate principal amount of $750.0 million, fully outstanding as of December 31, 2024[427]. - The company’s total outstanding 2028 Notes amounted to $1.5 billion as of December 31, 2024[428]. - The company’s total outstanding 2027 Notes amounted to $1.15 billion as of December 31, 2024[429]. - The company issued $1.50 billion principal amount of convertible senior notes due in 2028, with net proceeds of $1.31 billion after costs[573]. - The 2028 Notes have an interest rate of 0.125% per year, payable semi-annually, and mature on March 1, 2028[574]. - The company has a five-year senior unsecured revolving credit facility allowing borrowing up to $1.05 billion for working capital and general corporate purposes[596]. Stock and Equity - The board of directors approved a future stock split in the form of a special dividend of one share of Class A common stock for each outstanding share, contingent on specific conditions being met[491]. - The conditions for the future stock split include the Class A common stock's average volume weighted average price (VWAP) reaching or exceeding $40 per share for 90 consecutive trading days[491]. - The company did not declare any dividends for the year ended December 31, 2024[541]. - The additional paid-in capital increased to $15,644,132 thousand in 2024 from $14,613,404 thousand in 2023, an increase of approximately 7.03%[478]. Accounting and Reporting - The company adopted ASU 2023-07 effective January 1, 2024, which enhances segment reporting disclosures[528]. - Recent accounting pronouncements include new guidance on income tax disclosures and expense disaggregation, effective for annual periods beginning after December 15, 2024[526]. - Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations, with no impairment charges recorded in the periods presented[519]. - Intangible assets are amortized on a straight-line basis over their estimated useful lives, which vary from 2 to 14 years depending on the asset type[521].

Snap (SNAP) reported $1.56 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 14.4%. EPS of $0.16 for the same period compares to $0.08 a year ago.The reported revenue represents a surprise of +0.55% over the Zacks Consensus Estimate of $1.55 billion. With the consensus EPS estimate being $0.14, the EPS surprise was +14.29%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street exp ...