Back to top

Image: Bigstock

International Markets and Snap (SNAP): A Deep Dive for Investors

Read MoreHide Full Article

Have you assessed how the international operations of Snap (SNAP - Free Report) performed in the quarter ended June 2025? For this company behind Snapchat, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.

International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.

In our recent assessment of SNAP's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.

The recent quarter saw the company's total revenue reaching $1.34 billion, marking an improvement of 8.8% from the prior-year quarter. Next, we'll examine the breakdown of SNAP's revenue from abroad to comprehend the significance of its international presence.

A Look into SNAP's International Revenue Streams

During the quarter, Rest of World contributed $258.99 million in revenue, making up 19.3% of the total revenue. When compared to the consensus estimate of $289.5 million, this meant a surprise of -10.54%. Looking back, Rest of World contributed $307.51 million, or 22.6%, in the previous quarter, and $229.84 million, or 18.6%, in the same quarter of the previous year.

Europe generated $265.34 million in revenues for the company in the last quarter, constituting 19.7% of the total. This represented a surprise of +5.33% compared to the $251.93 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $224.02 million (16.4%), and in the year-ago quarter, it contributed $239.37 million (19.4%) to the total revenue.

Anticipated Revenues in Overseas Markets

Wall Street analysts expect Snap to report a total revenue of $1.49 billion in the current fiscal quarter, which suggests an increase of 8.9% from the prior-year quarter. Revenue shares from Rest of World and Europe are predicted to be 21.2%, and 18.1%, corresponding to amounts of $317.27 million, and $271.03 million, respectively.

Analysts expect the company to report a total annual revenue of $5.88 billion for the full year, marking an increase of 9.6% compared to last year. The expected revenue contributions from Rest of World and Europe are projected to be 21.7% ($1.27 billion), and 18% ($1.06 billion) of the total revenue, in that order.

In Conclusion

Relying on global markets for revenues presents both prospects and challenges for Snap. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.

Currently, Snap holds a Zacks Rank #2 (Buy), signifying its potential to outperform the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Assessing Snap's Stock Price Movement in Recent Times

Over the preceding four weeks, the stock's value has diminished by 18.7%, against an upturn of 2.7% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts Snap among its entities, has appreciated by 6.3%. Over the past three months, the company's shares have seen a decline of 15.3% versus the S&P 500's 13.2% increase. The sector overall has witnessed an increase of 24.3% over the same period.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Snap Inc. (SNAP) - free report >>

Published in