What To Expect From Snap’s (SNAP) Q4 Earnings

Jabin Bastian /
2023/01/30 4:37 am EST

Social network Snapchat (NYSE: SNAP) will be announcing earnings results tomorrow after market close. Here's what investors should know.

Last quarter Snap reported revenues of $1.12 billion, up 5.71% year on year, missing analyst expectations by 0.91%. It was a weak quarter for the company, with a miss of the top line analyst estimates and slow revenue growth. The company reported 363 million daily active users, up 18.6% 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 0.61% year on year to $1.3 billion, slowing down from the 42.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.12 per share.

Snap Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing four downward revisions over the last thirty days. The company missed Wall St's revenue estimates four times over the last two years.

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 there has been positive sentiment among investors in the segment, with the stocks up on average 33.1% over the last month. Snap is up 21.6% during the same time, and is heading into the earnings with analyst price target of $11.50, compared to share price of $10.77.

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.