Snap: disappointing outlook, shares dim

(CercleFinance.com) - Thursday night, Snap unveiled lacklustre quarterly results with disappointing forecasts, leading to its share plunging more than 30% in early trading on Friday in New York.


The owner of the messaging service Snapchat, yesterday evening reported that the number of active users was up 19% to 363 million for the third quarter.

Its revenues—which come mainly from advertising income—as a consequence were up 6% to 1.13 billion dollars, whilst analysts expected an average of 1.14 billion.

Its adjusted operating income (EBITDA) came to 73 million dollars compared to 174 million dollars one year previously, for accrued net losses of 360 million dollars, to be compared with -72 million dollars in the third quarter of 2021.

For the fourth quarter, Snap declared that it is aiming for 375 million users, up 18% from one year to the next, for stable revenues year-on-year, whereas Wall Street had been expecting growth of around 7%.

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