Snapchat (SNAP) shared its earnings results for Q1 2023 today, and included in the details of the report is information reflecting the company beating EPS expectations, but missing on revenue. Wall Street EPS estimates were $0.01 per share, with whisper number estimates at $0.03 per share. Actual EPS came in at $0.01 per share.
Revenue estimates were $1 billion, with reported revenue at $989 million for Q1 2023, missing estimates by around $11 million and falling below the $1,063 million reported during the same quarter the previous year. Elsewhere in the report, net loss is seen at $329 million, with operating cash flow at $151 million. In terms of positive metrics, Snapchat noted that it grew its daily active users (DAUs) with 383 million seen in Q1.
"Our community continues to grow, reaching 383 million daily active users in Q1, and we are working to deepen engagement with our content platform while building innovative new features and services like My AI," said Snapchat CEO, Evan Spiegel. "We are working to accelerate our revenue growth and we are using this opportunity to make significant improvements to our advertising platform to help drive increased return on investment for our advertising partners."
Digging deeper into Snapchat’s daily active user growth, these increased by 51 million or 15 percent year-over-year (YoY). Total time watching Spotlight grew over 170 percent YoY, with Spotlight reaching over 350 million monthly active users on average during Q1 at an increase of 46 percent YoY. Snapchat also touches upon the recent launch of its AI-powered chatbot, My AI, in the report along with new safeguards introduced to My AI including “a new age signal and time out functionality.”
Following the release of Snapchat’s Q1 2023 report and news of it missing revenue expectations for the quarter, SNAP shares fell nearly 20 percent after hours on Thursday. For more on Snapchat’s Q1 2023 performance, be sure to read through the full earnings report. Also check out some of our previous coverage, including the previous announcement Snapchat launching its own ChatGPT bot called My AI.