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SNAP Gearing Up to Report Q1 Earnings: What's in the Cards?
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Snap (SNAP - Free Report) is set to report first-quarter 2022 results on Apr 21.
The Zacks Consensus Estimate for revenues is currently pegged at $1.06 billion, indicating 38.19% growth from the year-ago quarter’s reported figure.
In the last reported quarter, Snapchat’s subscriber growth — reflected by Daily Active Users (DAUs) — increased by 54 million on a year-over-year basis. DAUs at the end of the fourth quarter was 319 million.
The Zacks Consensus Estimate for global DAUs is currently pegged at 328 million, indicating growth of 19.3% from the year-ago quarter’s levels.
The consensus mark for the bottom line has been steady at break-even earnings per share in the past 60 days, indicating no changes year over year.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Consider
Snap has been benefiting from a spike in the usage of Snapchat. The growing adoption of Snapchat among Gen Z (13-24 years) is expected to have driven DAUs, thus expanding the company’s advertiser base.
The company is focused on continuously adding innovative features like Lens Studio 2.0, Camera Kit, Snap Minis and Bitmoji for Games, making Snapchat more attractive for users and advertisers. With these recent launches, Snap is democratizing its augmented reality (AR) tools that are likely to drive user growth.
Snap had previously launched a suite of creative tools, including custom sticker and three AR-enabled lenses, that allows Snapchatters to fingerspell, honoring the International Week of the Deaf. Using SignAll’s AI and computer vision technology that recognizes and translates American Sign Language, these AR Lenses will inspire users to fingerspell their name and other common words like love, hug and smile. These new features were designed thoughtfully with feedback and ideas from deaf and hard-of-hearing employees at Snap. Initiatives like these are expected to boost user engagement and user base growth.
In the to-be-reported quarter, Snap partnered with Ticketmaster to launch a new way for users to discover events within the Snap Map. The company also stated that this is the first time it has integrated a partner to Snap Map through its new Layers feature. The company’s Layers feature allows users to add data from some of Snap’s chosen developer partners directly to their map.
Snap added more than 160 international Discover channels in the last reported quarter and onboarded new partners, including Seven, One Entertainment Group in Germany and Canal+ in France.
In addition to the strong adoption of AR Lenses, Discover content and Shows are expected to have driven user growth.
Snap also revealed that it is working to create new AR music lenses. Soon Snapchat will feature Sound lenses with a pre-selected song embedded into the lens. The feature will transform till pictures appear as if they are singing.
The growing Snap Originals content is also expected to have bolstered user engagement.
New Snap Originals “The Me and You Show” reached more than 50 million viewers in fourth-quarter 2021.
In the to-be-reported quarter, Snap announced a new Snap Original, Breakwater, a series set in a futuristic world of climate refugees. The new show brings immersive AR experiences with the release of each new episode.
In January, this Zacks Rank #3 (Hold) company announced multi-year renewals of global content deal with Disney (DIS - Free Report) , Comcast’s (CMCSA - Free Report) NBCUniversal and Paramount Global (PARA - Free Report) , encompassing a range of new shows coming to Snapchat.
The three big media companies will continue collaborating with Snap through the extended agreements.
Disney, Comcast-owned NBCUniversal and Paramount Global will continue to provide their current content on Snapchat’s Discover and individually plans to bring more shows to the platform in the future.
The Zacks Consensus Estimate for Snap’s first-quarter ARPU is pegged at $3.18, suggesting an increase of 16.05% from the year-ago quarter’s reported figure.
A steady ad-spending environment is expected to reflect on Snap’s first-quarter top line. Creator Marketplace, launched in the second quarter of fiscal 2021, is expected to have been a consistent key catalyst in the first quarter. Creator Marketplace integrates Creators directly into Snap’s advertising ecosystem for businesses to connect with Lens Creators, Lens Developers, Lens Partners and Snap Stars to elevate their marketing presence on Snapchat.
Advertising has been the only source of revenues for Snap, which has been facing significant competition from the likes of Twitter, Facebook and Google for ad dollars. A persistent decline in price per ad impression is likely to have dented advertising revenues.
Quarterly Developments
In February, Snap announced a new feature that will enable Snapchatters to update their username at any unclaimed handle once per year. The changed username will impact their Snap Codes, Streaks, Scores, or Memories.
In the first quarter, the company announced the acquisition of the Paris-based neurotech company, NextMind. The NextMind team will continue to operate out of Paris. The acquisition is anticipated to help Snap drive long-term augmented reality research efforts within Snap Lab.
Image: Bigstock
SNAP Gearing Up to Report Q1 Earnings: What's in the Cards?
Snap (SNAP - Free Report) is set to report first-quarter 2022 results on Apr 21.
The Zacks Consensus Estimate for revenues is currently pegged at $1.06 billion, indicating 38.19% growth from the year-ago quarter’s reported figure.
In the last reported quarter, Snapchat’s subscriber growth — reflected by Daily Active Users (DAUs) — increased by 54 million on a year-over-year basis. DAUs at the end of the fourth quarter was 319 million.
The Zacks Consensus Estimate for global DAUs is currently pegged at 328 million, indicating growth of 19.3% from the year-ago quarter’s levels.
The consensus mark for the bottom line has been steady at break-even earnings per share in the past 60 days, indicating no changes year over year.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Consider
Snap has been benefiting from a spike in the usage of Snapchat. The growing adoption of Snapchat among Gen Z (13-24 years) is expected to have driven DAUs, thus expanding the company’s advertiser base.
The company is focused on continuously adding innovative features like Lens Studio 2.0, Camera Kit, Snap Minis and Bitmoji for Games, making Snapchat more attractive for users and advertisers. With these recent launches, Snap is democratizing its augmented reality (AR) tools that are likely to drive user growth.
Snap had previously launched a suite of creative tools, including custom sticker and three AR-enabled lenses, that allows Snapchatters to fingerspell, honoring the International Week of the Deaf. Using SignAll’s AI and computer vision technology that recognizes and translates American Sign Language, these AR Lenses will inspire users to fingerspell their name and other common words like love, hug and smile. These new features were designed thoughtfully with feedback and ideas from deaf and hard-of-hearing employees at Snap. Initiatives like these are expected to boost user engagement and user base growth.
In the to-be-reported quarter, Snap partnered with Ticketmaster to launch a new way for users to discover events within the Snap Map. The company also stated that this is the first time it has integrated a partner to Snap Map through its new Layers feature. The company’s Layers feature allows users to add data from some of Snap’s chosen developer partners directly to their map.
Snap added more than 160 international Discover channels in the last reported quarter and onboarded new partners, including Seven, One Entertainment Group in Germany and Canal+ in France.
In addition to the strong adoption of AR Lenses, Discover content and Shows are expected to have driven user growth.
Snap also revealed that it is working to create new AR music lenses. Soon Snapchat will feature Sound lenses with a pre-selected song embedded into the lens. The feature will transform till pictures appear as if they are singing.
The growing Snap Originals content is also expected to have bolstered user engagement.
New Snap Originals “The Me and You Show” reached more than 50 million viewers in fourth-quarter 2021.
In the to-be-reported quarter, Snap announced a new Snap Original, Breakwater, a series set in a futuristic world of climate refugees. The new show brings immersive AR experiences with the release of each new episode.
Snap Inc. Price, Consensus and EPS Surprise
Snap Inc. price-consensus-eps-surprise-chart | Snap Inc. Quote
In January, this Zacks Rank #3 (Hold) company announced multi-year renewals of global content deal with Disney (DIS - Free Report) , Comcast’s (CMCSA - Free Report) NBCUniversal and Paramount Global (PARA - Free Report) , encompassing a range of new shows coming to Snapchat.
The three big media companies will continue collaborating with Snap through the extended agreements.
Disney, Comcast-owned NBCUniversal and Paramount Global will continue to provide their current content on Snapchat’s Discover and individually plans to bring more shows to the platform in the future.
The Zacks Consensus Estimate for Snap’s first-quarter ARPU is pegged at $3.18, suggesting an increase of 16.05% from the year-ago quarter’s reported figure.
A steady ad-spending environment is expected to reflect on Snap’s first-quarter top line. Creator Marketplace, launched in the second quarter of fiscal 2021, is expected to have been a consistent key catalyst in the first quarter. Creator Marketplace integrates Creators directly into Snap’s advertising ecosystem for businesses to connect with Lens Creators, Lens Developers, Lens Partners and Snap Stars to elevate their marketing presence on Snapchat.
Advertising has been the only source of revenues for Snap, which has been facing significant competition from the likes of Twitter, Facebook and Google for ad dollars. A persistent decline in price per ad impression is likely to have dented advertising revenues.
Quarterly Developments
In February, Snap announced a new feature that will enable Snapchatters to update their username at any unclaimed handle once per year. The changed username will impact their Snap Codes, Streaks, Scores, or Memories.
In the first quarter, the company announced the acquisition of the Paris-based neurotech company, NextMind. The NextMind team will continue to operate out of Paris. The acquisition is anticipated to help Snap drive long-term augmented reality research efforts within Snap Lab.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.