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

Max Juang /
2024/02/05 2:00 am EST

Social network Snapchat (NYSE: SNAP) will be reporting results tomorrow after market hours. Here's what you need to know.

Last quarter Snap reported revenues of $1.19 billion, up 5.3% year on year, beating analyst revenue expectations by 7%. It was a strong quarter for the company, with a decent beat of analysts' revenue estimates and solid growth in its user base. The company reported 406 million daily active users, up 11.8% 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 6.1% year on year to $1.38 billion, improving on the flat year-over-year growth in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 per share.

Snap Total Revenue

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

Looking at Snap's peers in the consumer internet segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Meta delivered top-line growth of 24.7% year on year, beating analyst estimates by 2.4% and Netflix reported revenues up 12.5% year on year, exceeding estimates by 1.4%. Meta traded up 8.3% on the results, and Netflix was up 11%.

Read our full analysis of Meta's results here and Netflix's results here.

Investors in the consumer internet segment have had steady hands going into the earnings, with the stocks up on average 0.3% over the last month. Snap is down 1.5% during the same time, and is heading into the earnings with analyst price target of $14.9, compared to share price of $17.1.

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.

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