Snap stock volatile after-hours on Q1 results

Snap Inc (NYSE: SNAP) stock is up nearly 10% in extended trading after the social media company reported a narrower-than-expected adjusted per-share loss for Q1. Its revenue, though, came in marginally below estimates.

Snap Q1 results

• Lost $359.6 million in the first quarter that translates to 22 cents per share.
• In the same quarter lasts year, its loss was capped at $286.9 million (19 cents a share).
• On an adjusted basis, the camera app lost 2 cents a share in fiscal Q1.
• Revenue was up 38% YoY to $1.06 billion, as per the earnings press release.
• FactSet consensus was for $17 cents of adjusted per-share loss on $1.07 billion in sales.
• Ended the quarter with 332 million DAUs (18% growth), versus 331 million expected.
• ARPU of $3.20 (16.8% up) was below $3.25 that analysts had anticipated.

According to CEO Evan Spiegel, Q1 was more challenging than expected. He blamed macroeconomic headwinds for some of the weakness, especially since advertisers paused their campaigns due to the Ukraine war.

Future outlook

For the current fiscal quarter, Snap forecasts a 20% to 25% increase in its revenue. This compares to analysts at 28%. It expects 344 million daily active users in Q2 versus experts’ call for 341.4 million.

The California-based company anticipated adjusted EBITDA this quarter to fall in the range of breakeven and $50 million. Apple’s 2021 privacy changes continue to be a headwind for Snap Inc. In the earnings press release, CEO Spiegel said:

In March, Snap bought NextMind to strengthen its footprint in augmented reality.