Snap CEO Evan Spiegel speaks throughout the Semafor World Economic system Summit 2025 at Conrad Washington in Washington, D.C., on April 23, 2025.
Kayla Bartkowski | Getty Photographs
Snap reported better-than-expected first-quarter revenue Tuesday however declined to offer steering, citing macroeconomic uncertainties that might weigh on promoting demand.
Shares dropped 13% in after-hours buying and selling.
Right here is how the corporate did in contrast with Wall Avenue’s expectations:
- Earnings per share: Lack of 8 cents. That determine will not be similar to analysts’ estimates.
- Income: $1.36 billion vs. $1.35 billion anticipated, in line with LSEG
- International every day lively customers: 460 million vs. 459 million anticipated, in line with StreetAccount
- International common income per person: $2.96 vs. $2.93 anticipated, in line with StreetAccount
Snap didn’t supply an outlook for the second quarter, citing uncertainties surrounding “how macro financial circumstances might evolve within the months forward, and the way this may occasionally affect promoting demand extra broadly.”
Analysts had anticipated $1.39 billion in second-quarter income steering. The corporate stated it expects every day lively customers to come back in close to the midpoint of its second-quarter vary at 468 million.
“Whereas our topline income has continued to develop, we have now skilled headwinds to start out the present quarter, and we consider it’s prudent to proceed to stability our stage of funding with realized income development,” the corporate stated in a letter to investors.
Snap shares over the previous yr
Like many tech corporations, Snap is dealing with a turbulent macro setup because it grapples with President Donald Trump’s evolving commerce plans. Many worry that world commerce uncertainty may lead corporations to decrease steering or pull again spending this earnings season.
Snap’s cited potential constraints on promoting demand as the rationale for holding off on steering. Advert revenues for the interval rose 9% yr over yr to $1.21 billion. That development got here primarily from direct response promoting. The corporate additionally stated that brand-oriented promoting income dipped 3% from a yr in the past.
Derek Andersen, Snap’s finance chief, stated throughout an earnings name that some advertisers have reported an affect from adjustments to the de minimis exemption that is scheduled to end on Friday. Shipments below $800 can come into the U.S. duty-free below the present loophole.
The corporate is not alone. Final Thursday, Alphabet reported first-quarter gross sales of $90.23 billion, which surpassed Wall Avenue expectations, however executives told analysts that the corporate might expertise headwinds to its on-line advert enterprise within the Asia-Pacific area additionally associated to the de minimis loophole ending.
Snap lowered its full-year adjusted working bills vary to between $2.65 billion and $2.70 billion, down from $2.70 billion to $2.75 billion. The corporate additionally revised its full-year value steering for stock-based compensation downward to between $1.13 billion and $1.16 billion from $1.15 billion to $1.20 billion.
Gross sales in Snap’s first quarter jumped 14% to $1.36 billion from $1.19 billion within the year-ago interval. The corporate reported a web lack of about $140 million, or 8 cents per share. That narrowed 54% from about $305 million, or 19 cents, within the year-ago interval. Adjusted EBITDA got here in at $108 million, topping a $64 million estimate from StreetAccount.
The corporate attributed the 8 cents loss to a $70.1 million cost associated to money severance, stock-based compensation bills and different prices related to a 2024 restructuring.
“These costs will not be reflective of underlying traits in our enterprise,” the corporate stated.
Snap posted 460 million every day lively customers throughout the interval, up from 453 million the earlier quarter. The corporate additionally stated that it reached 900 million month-to-month lively customers, up from 850 million in August, the final time Snap offered that stat. Each day lively customers in North America dropped to 99 million from 100 million final quarter, however Snap stated it would not anticipate additional declines within the present interval.
The corporate stated its Snapchat+ subscription service reached 15 million subscribers, up from 14 million within the earlier quarter. The service rolled out in 2022 and makes up the vast majority of Snap’s “different income.” Income for the unit rose 75% from a yr in the past to $152 million.
Meta studies its newest earnings on Wednesday, adopted by Reddit on Thursday and Pinterest on Could 8.
