Stock Track | Snap Inc. Surges Over 5% in Pre-Market on Strong Q4 Revenue Growth and Profitability

Stock Track
2025/02/05

Snap Inc. (SNAP) reported impressive fourth quarter and full year 2024 financial results, driving a surge of over 5% in its stock price during the pre-market trading session on Wednesday.

The key highlights from Snap's Q4 2024 performance include:

  • Revenue grew 14% year-over-year to $1.56 billion, exceeding analysts' expectations, fueled by an increase in active advertisers and engagement with its augmented reality (AR) products and services.
  • Daily Active Users (DAUs) increased by 9% year-over-year to 453 million in Q4 2024, reflecting the continued popularity of Snap's AR features and products across all regions.
  • The company reported net income of $9.1 million in Q4, a significant improvement from the net loss of $248.2 million in the same period last year, showcasing its progress towards profitability.
  • Adjusted EBITDA jumped 73% year-over-year to $276 million in Q4 2024, driven by the company's focus on monetization and cost optimization initiatives.
  • Snap's strong performance was driven by its efforts to enhance its advertising platform, attract more active advertisers, and diversify its revenue streams. The company's focus on monetization and cost optimization initiatives also contributed to its improved profitability.

    Looking ahead, Snap expects first-quarter revenue to be between $1.33 billion and $1.36 billion, and Adjusted EBITDA to range from $40 million to $75 million. The company plans to grow its full-time headcount by 8% to 10% in 2025 to support its growth initiatives.

    Evan Spiegel, CEO of Snap Inc., stated, "In 2024, we made significant progress on our core priorities of growing our community and improving depth of engagement, driving top-line revenue growth and diversifying our revenue sources, while building toward our long-term vision for augmented reality."

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