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SNAP's Q1 Earnings Match Expectations, Revenues Increase Y/Y
SNAPSnap(SNAP) ZACKS· ZACKS·2025-04-30 16:15

Core Insights - Snap (SNAP) reported first-quarter 2025 earnings of 4 cents per share, matching the Zacks Consensus Estimate, and reflecting a 33.33% increase from the previous year [1] - Revenues rose 14.1% year over year to 1.36billion,surpassingtheZacksConsensusEstimateby1.151.36 billion, surpassing the Zacks Consensus Estimate by 1.15% [1] Revenue Breakdown - North America contributed 61% of total revenues, with an 11.9% year-over-year increase to 831.7 million [2] - European revenues, accounting for 16.4% of total revenues, increased by 14.4% to 224.02million[2]RevenuesfromtheRestoftheWorld(ROW)reached224.02 million [2] - Revenues from the Rest of the World (ROW) reached 307.5 million, up 20.2% year over year [2] User Engagement - Snap's global daily active users (DAU) reached 460 million, marking a 9% year-over-year increase [4] - North America's DAU was 99 million, down 1% year over year, while Europe's DAU also stood at 99 million, up 3.1% [5] - ROW's DAU increased significantly by 15.9% to 262 million [5] - The total monthly active users surpassed 900 million in the first quarter [5] Advertising Performance - The number of advertisers with strong signal setups increased by 29% for large advertisers and 48% for mid-sized advertisers [6] - Over 60% of all direct response (DR) ad revenues have completed Conversions API (CAPI) integrations [6] Operating Expenses - Adjusted cost of revenues rose 11.7% year over year to 636.6million[7]Adjustedoperatingexpenseswere636.6 million [7] - Adjusted operating expenses were 618.2 million, up 6.7% year over year, with sales and marketing expenses decreasing by 1.3% to 195.8million[7]Generalandadministrativeexpensesincreasedby8.2195.8 million [7] - General and administrative expenses increased by 8.2% to 190 million, while research and development expenses rose 13.2% to 232.4million[7]FinancialMetricsAdjustedEBITDAwas232.4 million [7] Financial Metrics - Adjusted EBITDA was 108.4 million, reflecting a 137.5% increase from the previous year [8] - As of March 31, 2025, cash and cash equivalents and marketable securities totaled 3.2billion,downfrom3.2 billion, down from 3.37 billion at the end of 2024 [9] - Operating cash flow was 152millioncomparedto152 million compared to 88 million in the prior year, and free cash flow was 114million,upfrom114 million, up from 38 million [9] Guidance - For the second quarter of 2025, Snap expects infrastructure costs per DAU to be between 82 cents and 87 cents [11] - Adjusted operating expenses are projected to be between 2.65billionand2.65 billion and 2.7 billion [11]