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In 2022, Snap experienced a rocky year from Q1 to Q4 due to the weak economy that caused many businesses to cut back on digital ad budgets.
Social media company Snap Inc (NYSE: SNAP) missed its earnings for Q4 2022, causing its share to decline more than 14% in reaction to the news. While earnings per share were 14 cents versus the expected 11 cents, the company posted a weak revenue of $1.30 billion against expectations of $1.32 billion. Also, Snap said the average revenue per user in Q4 2022 was $3.47, lower than analysts’ projection of $3.49.
Notably, this is the third consecutive quarter that the social media company announced disappointing financial performance. When it fell short of its Q3 estimates in October, its shares plunged 28%. The same loss re-occurred in July when the company missed both the top and bottom lines. At the time, Snap fell 39%.
At press time, the company trades down 14.97% to $9.83 in extended trading hours. Except for losing nearly 64% over the past year, Snap stock has grown more than 29% since the beginning of the year. At the same time, it added 21.17% in the last three months and jumped 24.30% over the past month. In the last five days, SNAP has lost 19.54%.
Snap in Q4 2022
In 2022, Snap experienced a rocky year from Q1 to Q4 due to the weak economy that caused many businesses to cut back on digital ad budgets. At the same time, Apple’s iOS privacy update limited targeting capabilities also affected the quarterly revenue.
Speaking on the 2022 Q4 results, which ended “a challenging 2022,” Snap CEO Evan Spiegel revealed that the year ended with 375 million Daily Active Users. He continued:
“We continue to face significant headwinds as we look to accelerate revenue growth, and we are making progress driving improved return on investment for advertisers and innovating to deepen the engagement of our community.”
According to the 2022 Q4 report, daily active users added 56 million or 17% YoY. Specifically, the figures increased sequentially in each “North America, Europe, and Rest of World.” Additionally, 17 content partners reached more than 50 million viewers worldwide in the quarter. The Snapchat+ subscription hit over 2 million paying subscribers in 2022 Q4, per the Snap report. Like many other companies investing in new technologies, Snap also made efforts to grow its augmented reality platform. It teamed up with H&M to launch a new Camera Kit integration that enables an AR try-on experience.
Snap also renewed its partnerships with UFC and the Washington Post in the US in 2022 Q4. It also expanded its global presence through extended and new collaborations in different countries. The company grew its partnership with Groupe M6 in France. It also signed new agreements with BBC Studios in the UK, Totem Global in Australia, and G+J Medien (RTL) in Germany.