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Snap (SNAP) to Report Q1 Earnings: What's in the Cards?
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Snap (SNAP - Free Report) is set to report first-quarter 2020 results on Apr 21.
For the quarter, the company expects revenues between $450 million and $470 million. The Zacks Consensus Estimate for revenues is currently pegged at $426.9 million, indicating a 33.2% surge from the year-ago quarter’s reported figure.
Notably, in the last reported quarter, Snap’s subscriber growth reflected by Daily Active Users (DAUs) increased 31 million on a year-over-year basis and 8 million sequentially. DAUs are expected between 224 million and 225 million, up 18% year over year for the first quarter.
The Zacks Consensus Estimate for DAUs is currently pegged at 223 million, suggesting 17.4% growth from the figure reported in the year-ago quarter.
Meanwhile, the consensus mark for loss has widened by a penny to 7 cents per share in the past 30 days.
Snap’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 25.6%.
Let’s see how things are shaping up for the upcoming announcement.
Factors to Influence Q1 Results
Snap’s focus on continuously adding a set of innovative features like Lens Studio 2.0, is making the Snapchat platform more attractive for users and advertisers. The growing adoption of the platform among the Gen Z (13-24 years) is expected to have driven DAUs and in turn, the top line in the to-be-reported quarter.
Notably, ARPU improved 23.4% year over year in fourth-quarter 2019, a trend that most likely continued in first-quarter 2020 as well.
Moreover, increased usage of the Snapchat platform amid the coronavirus-led global lockdowns is expected to have benefited Snap in the to-be-reported quarter. The company witnessed more than 50% jump in the usage of Snapchat’s voice and video calling features in late March than late February, which were often used with AR lenses.
Furthermore, time spent playing with lenses increased by more than 25% over the same time frame.
Additionally, Snaps sent between friends and Group Chat engagement as well as Snaps sent to Group Chats reached an all-time high. Snap Games also witnessed all-time high engagement levels.
Further, the rising uptake of Snapchat shows, driven by content related to news, health & wellness and gaming is expected to have aided user engagement in the quarter to be reported.
However, a persistent decline in price per ad impression is likely to have hurt advertising revenues in the first quarter. Notably, advertising is Snap’s only source of revenues and this Zacks Rank #3 (Hold) company faces significant competition from the likes of Twitter , Facebook , Alphabet’s (GOOGL - Free Report) Google and Pinterest for ad dollars. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, Twitter withdrew its revenue and operating income guidance for the first quarter of 2020 due to the aggravating adverse impact of coronavirus on the global operating and economic environment as well as on advertiser demand. Management at Facebook admitted that its ad business took a huge beating in countries severely hit by the novel coronavirus.
Additionally, Google’s travel ad revenues are expected to have declined due to coronavirus-led global lockdowns and social distancing, which severely hurt travel & tourism industry.
Moreover, escalating infrastructure costs and higher investments in content, sales and marketing are a few lingering overhangs on profitability. Hence, Snap’s first-quarter bottom-line result is expected to reflect the negative impact of the rising expenses.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Snap (SNAP) to Report Q1 Earnings: What's in the Cards?
Snap (SNAP - Free Report) is set to report first-quarter 2020 results on Apr 21.
For the quarter, the company expects revenues between $450 million and $470 million. The Zacks Consensus Estimate for revenues is currently pegged at $426.9 million, indicating a 33.2% surge from the year-ago quarter’s reported figure.
Notably, in the last reported quarter, Snap’s subscriber growth reflected by Daily Active Users (DAUs) increased 31 million on a year-over-year basis and 8 million sequentially. DAUs are expected between 224 million and 225 million, up 18% year over year for the first quarter.
The Zacks Consensus Estimate for DAUs is currently pegged at 223 million, suggesting 17.4% growth from the figure reported in the year-ago quarter.
Meanwhile, the consensus mark for loss has widened by a penny to 7 cents per share in the past 30 days.
Snap Inc. Price and EPS Surprise
Snap Inc. price-eps-surprise | Snap Inc. Quote
Snap’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 25.6%.
Let’s see how things are shaping up for the upcoming announcement.
Factors to Influence Q1 Results
Snap’s focus on continuously adding a set of innovative features like Lens Studio 2.0, is making the Snapchat platform more attractive for users and advertisers. The growing adoption of the platform among the Gen Z (13-24 years) is expected to have driven DAUs and in turn, the top line in the to-be-reported quarter.
Notably, ARPU improved 23.4% year over year in fourth-quarter 2019, a trend that most likely continued in first-quarter 2020 as well.
Moreover, increased usage of the Snapchat platform amid the coronavirus-led global lockdowns is expected to have benefited Snap in the to-be-reported quarter. The company witnessed more than 50% jump in the usage of Snapchat’s voice and video calling features in late March than late February, which were often used with AR lenses.
Furthermore, time spent playing with lenses increased by more than 25% over the same time frame.
Additionally, Snaps sent between friends and Group Chat engagement as well as Snaps sent to Group Chats reached an all-time high. Snap Games also witnessed all-time high engagement levels.
Further, the rising uptake of Snapchat shows, driven by content related to news, health & wellness and gaming is expected to have aided user engagement in the quarter to be reported.
However, a persistent decline in price per ad impression is likely to have hurt advertising revenues in the first quarter. Notably, advertising is Snap’s only source of revenues and this Zacks Rank #3 (Hold) company faces significant competition from the likes of Twitter , Facebook , Alphabet’s (GOOGL - Free Report) Google and Pinterest for ad dollars. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, Twitter withdrew its revenue and operating income guidance for the first quarter of 2020 due to the aggravating adverse impact of coronavirus on the global operating and economic environment as well as on advertiser demand. Management at Facebook admitted that its ad business took a huge beating in countries severely hit by the novel coronavirus.
Additionally, Google’s travel ad revenues are expected to have declined due to coronavirus-led global lockdowns and social distancing, which severely hurt travel & tourism industry.
Moreover, escalating infrastructure costs and higher investments in content, sales and marketing are a few lingering overhangs on profitability. Hence, Snap’s first-quarter bottom-line result is expected to reflect the negative impact of the rising expenses.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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