Snap Earnings: What To Look For From SNAP

Jabin Bastian /
2022/04/20 7:09 am EDT
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Social network Snapchat (NYSE: SNAP) will be announcing earnings results tomorrow after the bell. Here's what you need to know.

Last quarter Snap reported revenues of $1.29 billion, up 42.4% year on year, beating analyst revenue expectations by 8.05%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and an exceptional revenue growth. The company reported 319 million daily active users, up 20.3% year on year.

Is Snap buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Snap's revenue to grow 39% year on year to $1.06 billion, slowing down from the 66.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.

Snap Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing six upward and three downward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 8.18%.

With Snap being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for consumer internet stocks, but the whole sector has been facing a sell-off since late last year, with stocks down on average 7.47% over the last month. Snap is down 8.38% during the same time, and is heading into the earnings with analyst price target of $54.51, compared to share price of $33.2.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.