pop The shares jumped in trading on Tuesday after the company informed better results than expected in the fourth quarter.
Here is how the company compared to Wall Street's expectations:
- Arrow's profits: 16 cents were seized for 14 cents expected, according to Lseg
- profit: $ 1.56 billion for $ 1.55 billion expected, according to LSEG
- International active users of the global daily: 453 million compared to 451.1 million expected, according to the street account
- Average global revenue for each user: $ 3.44 for $ 3.44 expected, according to the street account
The fourth quarter revenues increased by 14 % by $ 1.36 billion in the previous year. The net income in the quarter was $ 9.1 million, or the stock. In the previous year, Snap Record A net loss in the fourth quarter of $ 248 million, or 15 cents per share.
Snap said it expects the revenues of the first quarter will range from 1.325 billion dollars and 1.36 billion dollars. The center point of this range is $ 1.34 billion, and it is higher than Wall Street's expectations of $ 1.33 billion.
However, Snap's profits will decrease in the first quarter of the first quarter of $ 40 million to $ 75 million, less than the expected analysts' expectations of $ 78.5 million. In the investor's speech, Snap attributed the guidance to “investment plans for the next quarter”.
Snap said: “The modified operating expenses will grow in the first quarter in the range of 11 % to 12 % on an annual basis due to employment and legal costs and” a seasonal transformation in marketing expenses to quarter 1 for the previous year. “
“While we look to the year 2025, we see additional opportunities for investment in a productive manner in expanding our business in view of the basic improvements we conducted on our advertising platform and the momentum that we created in our market initiatives,” especially in the sector that focused on the sector and said Snap in the small and medium message. Size, in the message. “Our investment plans for 2025 reflect this optimism, as well as a strong commitment to making more financial progress towards profitability as its scope expands.”
In addition, the company said it adhered to $ 5 million “to support societies and team members” affected by the latter Los Angeles fires And it is expected that “more obligations over time” are expected.
In September, the Prosecutor of New Mexico foot A lawsuit against Snap that claimed the company's Snapchat application systems and recommendations for “enhancing and promoting illegal sexual materials that include children and facilitating procedures and Trafficking Of children, drugs and guns. Earlier in January, SNAP shares Decline After the Federal Trade Committee said it would refer to a complaint against the AI Chatbot company to the Ministry of Justice.
Last week, Dead I mentioned the fourth quarter results That beat revenues and profits and repeated its plans to spend largely on investments related to the lack of intelligence. alphabet Tuesday Defeat On profits, but revenues are lost. Pinterest profit reports on Thursday followed I responded next week.
Snap said that the daily active users for the first quarter will be 459 million, which leads analysts' expectations of 458.3 million.
The company said that Snapchat+ now has 14 million subscribers, up from 12 million The third quarter. The service that First In 2022, the largest part of what Snap calls “other revenues”. The company said that this unit grew by 131 % on an annual basis in 2024 and has a “increase in revenue increase annually more than $ 500 million.”
Snap Evan Spiegel, CEO of Snap Evan Spiegel, said in a call on Tuesday with analysts that he is pleased that the user responds to Snapchat+ and the company is considering raising the subscription price, which currently costs $ 3.99 per month.
SPIEGEL also commented on China headquarters Deepseek model of artificial intelligence This was cheaper and faster in construction and work compared to other similar programs of technology giants such as Meta, Alphabet and Openai. Spiegel said the Deepseek model of artificial intelligence shows that “the capital is not a long -term trench in technology.”
“It was really inspiring to see innovation there.” “I think it checks the authenticity of our view that many of these models will continue to work over time, and more efficiently operating.”
Last week, Mark Zuckerberg, CEO of Meta, told analysts during a profit call that Meta still Digestion of some of the capabilities of DepsicBut he added that it is very early to have a strong opinion about what this means to the path around the infrastructure and structure, “which means that Meta will not reduce the spending of artificial intelligence anytime soon.
Regarding whether Snap has seen any impact of doubtful Tiktok fate in the United States, Spiegel said, “The general environment of uncertainty benefits from our business.” He said that both advertisers and creators are looking to “diversify” the social platforms they depend on, and that Snap helps them to plan them.
Earlier this week, President Donald Trump The executive order signed In detail the government's potential sovereign wealth fund, which he said it is likely to be used to buy American Tiktok operations from China -based BYTEDANCE.
Snap said that Ajit Mohan will become the chief official of the business after he previously held the position of the head of the Asia Pacific region. Before joining Snap in 2023, Mohan was the Vice President and Administrative Director of India in Meta.
He watches: Meta and Microsoft Defend Ai Capex spend after Deepseek
