- Snap projects first-quarter 2025 revenue between $1.33 billion and $1.36 billion, slightly higher than the estimate of $1.33 billion.
- Adjusted EBITDA for the first quarter is predicted to be between $40 million and $75 million, lower than the expected $79.9 million.
- The forecast for daily active users in the first quarter is around 459 million, exceeding the estimate of 458.16 million.
- Yearly adjusted operating expenses are projected between $2.7 billion to $2.75 billion.
- Fourth-quarter 2024 revenue reached $1.56 billion, marking a 14% increase year-over-year, surpassing the estimate of $1.55 billion.
- North America revenue grew by 7.7% year-over-year, totaling $968.9 million, slightly above the $964.2 million estimate.
- Revenue in Europe increased by 20% year-over-year, reaching $287.0 million, just above the estimate of $286.9 million.
- Revenue from the rest of the world grew by 35% year-over-year to $301.3 million, surpassing the $292.7 million estimate.
- Adjusted EPS doubled to 16 cents from 8 cents year-over-year, exceeding the estimate of 14 cents.
- Fourth-quarter adjusted EBITDA was $276.0 million, up 73% year-over-year, surpassing the $248.1 million estimate.
- Daily active users in the fourth quarter were 453 million, a 9.4% increase year-over-year, above the estimate of 451.17 million.
- Average revenue per user increased by 4.6% year-over-year to $3.44, slightly higher than the $3.43 estimate.
- North America’s average revenue per user rose by 8.6% to $9.73, above the estimate of $9.62.
- Europe’s average revenue per user climbed by 16% to $2.89, slightly exceeding the estimate of $2.87.
- The average revenue per user in the rest of the world increased by 16% to $1.19, meeting the estimate.
- Free cash flow was $182.4 million, a 65% rise year-over-year, slightly exceeding the $181.9 million estimate.
- The number of employees decreased by 7.1% to 4,911, below the estimate of 4,998.
- Snapchat+ subscribers doubled to 14 million from 7 million in 2024.
Snap on Smartkarma
Analyst coverage of Snap on Smartkarma highlights positive sentiments towards the company’s recent performance and strategic initiatives. Baptista Research‘s report titled “Snap’s Bold Moves in AR and AI Pay Off – Can It Keep Up the Momentum in 2025?” emphasizes Snap Inc.’s satisfactory revenue increase of 15% year-over-year to $1.37 billion. This growth was attributed to the diversification of revenue streams and success in the direct response advertising business. Additionally, Snap saw a substantial rise in daily active users, reaching 443 million in Q3.
Another report by Baptista Research, “Snap Inc.: Investment in Augmented Reality To Play Catch Up With Rivals?” indicates that Snap Inc. showed steady growth and strategic advancements in the second quarter of 2024. The company’s focus on visual communication has led to impressive milestones, with over 850 million monthly active users and 432 million daily active users. This growth is supported by increased user engagement and the expansion of Snap’s content platform, positioning the company for further success in the market.
A look at Snap Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Snap Inc. shows promising potential for long-term growth. With a strong score in Momentum, the company is showing positive trends in its stock price movement, indicating investor interest and confidence. Additionally, Snap’s solid scores in Growth and Resilience highlight the company’s ability to expand its market presence and navigate through challenges effectively.
Despite lower scores in Value and Dividend, Snap’s overall outlook remains optimistic, especially considering its innovative technology and social media services. As a provider of mobile camera application products, Snap continues to attract users globally, enhancing its position in the competitive tech industry. With a focus on sustaining growth and adapting to market dynamics, Snap appears well-positioned for future success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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