Snapchat parent shies away from quarterly guidance, citing 'headwinds'

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

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

April 29, 2025 16:36 ET (20:36 GMT)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Tiger Brokers

Snapchat parent shies away from quarterly guidance, citing 'headwinds'

At the request of the copyright holder, you need to log in to view this content

Most Discussed