Snapchat (SNAP) parent company Snap Inc. reported in with its Q4 2023 earnings report and full year results for 2023 as a whole. The news is mostly negative with the company posting a weaker than anticipated guidance figure for next quarter. That has resulted in a steep drop for Snapchat's stock, plunging by more than 25 percent.
"As we enter Q1, we anticipate continued growth of our global community and, as a result, our guidance range is built on the assumption that DAU will be approximately 420 million in Q1," reads the Snapchat Q4 2023 earnings results. "We are focused on executing against our roadmap to deliver improvements to our direct-response advertising platform to drive improved results for our advertising partners and accelerate topline growth. Our guidance range is for revenue of $1,095 million to $1,135 million, implying year-over-year revenue growth of 11% to 15%. Based on this revenue range and our investment plans for the quarter, we estimate that Adjusted EBITDA will be between negative $55 million and negative $95 million in Q1."
While Snapchat (SNAP) stock finished up $0.70 at the end of the Tuesday, February 6 trading day, it has since nosedived in after hours trading. It is down by over 30 percent as of the time of this post.
The sudden drop in Snapchat stock also comes in the wake of the company missing its revenue expectations for this past quarter. The company hopes to recover through initiatives like Snapchat+, new AI features, a revamped ad creation interface called Snap Promote, and partnerships with companies like NYX Professional Makeup. We'll continue watching Snapchat's progress in the months ahead. Keep it on Shacknews for any updates.