MW Snapchat parent shies away from quarterly guidance, citing 'headwinds'
By Claudia Assis
Investors worry about Snap's advertising business
Snap Inc. investors looked past a quarterly earnings beat for the Snapchat parent to worry anew about the company's advertising business.
Snap (SNAP) late Tuesday spooked Wall Street by saying that ongoing economic uncertainty could impact advertising, and said it won't provide current-quarter guidance.
Snap's stock dropped more than 11% in the extended session despite a first-quarter beat for the company.
"Given the uncertainty with respect to how macroeconomic conditions may evolve in the months ahead, and how this may impact advertising demand more broadly, we do not intend to share formal financial guidance for [the second quarter]," Snap executives said in a letter to shareholders.
"While our topline revenue has continued to grow, we have experienced headwinds to start the current quarter, and we believe it is prudent tocontinue to balance our level of investment with realized revenue growth," it said.
Snap reported a loss of 8 cents a share in the quarter. First-quarter revenue rose 14% year on year to $1.36 billion, while the number of daily active users rose 9% year on year to 460 million people.
Analysts polled by FactSet expected the company to report a GAAP loss of 13 cents a share on sales of $1.35 billion. The number of daily users was in line with the consensus.
-Claudia Assis
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(END) Dow Jones Newswires
April 29, 2025 16:36 ET (20:36 GMT)
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