Snap Inc. ($SNAP) Earnings (Q1 FY22)

 Snap Inc. ($SNAP) Earnings and Opinion:


Snap aka Snapchat is a company in the communication services sector and operates in the Internet Content and Information industry. The company operates as a camera company both in North America and Internationally. Snapchat was founded in 2010 and is currently headquartered in Santa Monica, California. The company made its debut on the stock market in early 2017.

Snap Inc. EPS and Revenue (Q1 FY22):

  • EPS of -$0.02 missing expectations of $0.00
  • Revenue of $1.062B beating expectations of $1.06B
Snap Inc. Highlights Q1:
  • Daily Active users increased 18% to 332M
  • Revenue increased 38% (YOY)
  • Operating cash flow of $127M
  • Free cash flow of $102M
Snap Inc. Q2 FY22 Outlook:
  • Revenue growth (YOY) between 20-25%
  • Adjusted EBITDA of $0-50M
Opinion:
Snapchat is currently up a tiny bit after reporting earnings after the market closed today. They saw a miss on EPS expectations and slightly beat expectations on revenue. Snapchat saw a jump of 18% in daily active users and saw some solid cash flow numbers. One thing that stood out was the revenue growth of 38% on a year-to-year basis. The outlook is also positive, so it is no surprise to see the stock trading up right now. Now if we want to go into the volatility talk, this stock could be at the top of the list. We have seen a wild ride with this stock since the ipo. It has fluctuated like crazy and it always happens near earnings reports. Snapchat is a company that makes money solely on ad-revenue, so it is all dependent on the amount of users to push it higher. That is why on this earnings report, we see a little push higher because more users meant more money. I want to to see this company grow and eventually become profitable. Once it becomes profitable and builds a solid revenue platform, then I could see it possibly getting swooped up in acquisitions. For now, I would stay out of it. The volatility is to high with this stock, so you never really know what it is going to do.

*Information from Yahoo Finance, Snap Inc.
*Estimates from Zacks

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