Snap failed to meet profit expectations in Q1! Daily active users increased to 332 million!

It is learned that Snapchat announced its 2022Q1 quarterly financial report, which was lower than Wall Street's forecast. Its net loss increased by 25% to $360 million. Snap's Q1 revenue increased by 38% year-on-year to $1.063 billion, compared with a 66% increase in the same period last year. The company reported an adjusted net loss of 2 cents per share. Wall Street analysts expected Snap's revenue to be $1.07 billion and adjusted earnings per share to be 1 cent.

The Q1 net loss included a $92 million loss from Snap's investment in a company that will go public in 2021. Excluding this, Snap's net income would have increased by 7%, or $19 million, and its loss would have fallen to $267 million.

In North America, Snap's new active users increased by 5% year-on-year to 98 million in the first quarter, and the number of new active users in the European market increased by 10% year-on-year to 84 million. Snap's daily average active users in other markets around the world also increased by 13 million. The total daily average active users increased by 52 million (+18%) year-on-year to 332 million - exceeding the previous expectation of 328 million to 330 million. At the same time, the user growth rate in the first quarter was 18%, which slowed down from the 22% in the first quarter of 2021 and the 20% in the fourth quarter of 2021.

• On the content side, Snap said the time spent on its TikTok-style Spotlight for user-generated content has increased 230% year-over-year.

• On average, more than 250 million Snapchatters engage in augmented reality every day

• Snapchatters interacted with Valentine’s Day Lenses over 9 billion times, more than double last year. Snapchatters more than tripled their use of Lenses created by our community compared to the first quarter of 2021

• Total daily time spent by Snapchatters aged 25 and older on shows and publisher content increased more than 25% year-over-year

• In the first quarter of 2022, Snapchatters opened more than twice as many places from SnapMap as in the first quarter of 2021

Snap CEO Evan Spiege said that Snap's advertising sales growth rate slowed "generally" in the first quarter after Russia invaded Ukraine. This added to the pressure and challenges faced by Snap from supply chain disruptions, labor shortages, inflationary pressures, and rising interest rates, which remained challenges in the second quarter. Evan Spiege expressed concern that the future operating environment may be more challenging, leading to further suspension of advertising campaigns or further reductions in advertiser budgets. Also limiting Snap's revenue growth is the continued impact of Apple's iOS privacy policy update, which requires users to double-opt in to allow ad tracking.

It is learned that after years of losses, Snap announced its first profit ($22.6 million) in the fourth quarter of 2021. Snap expects revenue growth in the second quarter of 2022 to be between 20% and 25%, and adjusted EBITDA is expected to be between break-even and $50 million.

Editor ✎Estella/

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