Snap Inc. reported better-than-expected fourth-quarter results on Tuesday, with revenue increasing 14% from last year to $1.56 billion. The company’s stock surged in extended trading.
The company’s adjusted earnings per share were 16 cents, beating expectations of 14 cents. Revenue was also above projections at $1.55 billion expected. Global daily active users grew to 453 million, surpassing forecasts of 451.1 million.
However, Snap’s first-quarter revenue forecast is lower than analyst expectations, ranging between $1.325 billion and $1.36 billion. The company attributed this to “investment plans for the quarter ahead.”
Investment in scaling the business, particularly in its ad platform and small- and medium-sized businesses, is expected to continue. This optimism will drive further financial progress towards profitability as Snap scales.
Snap has also committed to supporting communities affected by recent wildfires in Los Angeles. The company anticipates making further commitments over time.
A lawsuit filed against Snap by the New Mexico attorney general alleged that the Snapchat app’s design and recommendation systems promote illicit material involving children. However, this did not seem to impact the company’s Q4 results.
Snap CEO Evan Spiegel expressed optimism about its user response to Snapchat+, which has 14 million subscribers. He also mentioned a breakthrough AI model from China-based DeepSeek, which validates Snap’s view that many models will be commoditized in the future.
The company is preparing for potential changes in the social media landscape with TikTok’s potential ban in the US.
Source: https://www.cnbc.com/2025/02/04/snap-q4-2024.html