Snap Misses Q1 Earnings Targets, Ramps Up Daily Users to 332 Million

variety.com:

Todd Spangler NY Digital EditorSnap, the parent company of Snapchat, fell just short of Wall Street forecasts for the first quarter of 2022, with CEO Evan Spiegel citing a “challenging operating environment.”The media and messaging app company gained 13 million average Snapchat daily active users worldwide for the period, to stand at 332 million — exceeding its previous expectations of hitting 328 million-330 million average DAUs.

Snapchat had 319 million average DAUs in the fourth quarter.Snap shares dipped more than 4% in after-hours trading Thursday.Click here to sign up for Variety’s free Strictly Business newsletter covering earnings, financial news, and more.“Our first quarter results reflect the underlying momentum in our business through a challenging operating environment,”  Spiegel said in announcing the Q1 results. “We remain focused on providing value for our growing community, delivering ROI for our advertising partners, and investing against our enormous opportunity in augmented reality.” For Q1, Snap’s revenue increased 38% to $1.063 billion while its net loss was $360 million, compared with $287 million in the prior-year quarter.

The company reported an adjusted net loss of 2 cents per share. Wall Street analysts on average had expected Snap to post revenue of $1.07 billion and adjusted EPS of 1 cent, per financial data provider Refinitiv.Snap had reported its first-ever net profit for Q4 2021, managing to earn $22.6 million after years of red ink.

The company had provided guidance for Q1 revenue to be between $1.03 billion and $1.08 billion with adjusted EBITDA to be roughly breakeven.On April 28, the company is hosting its annual Snap Partner Summit, where it expects to announce several new products.