Stock Markets 1 hour ago (Jul 21, 2022 05:24PM ET)
© Reuters. Snap (SNAP) Shares Plunge 25% Following Weak Q2 Results, Lack of Guidance
By Davit Kirakosyan
Snap (NYSE:) shares plunged 25% after-hours following the company’s weak second-quarter earnings results and lack of guidance. While EPS of ($0.02) came in better than the consensus estimate, the revenue of $1.11 billion (up 13% year-over-year) of $1.15 billion. Q2 DAU (Daily Active Users) were 347 million, representing an increase of 18% year-over-year.
The company didn’t provide Q3 guidance for revenue or adjusted EBITDA due to uncertainties related to the operating environment.
Several analysts have already blasted the lack of guidance, calling it the “focus point of this print.”
A Goldman Sachs analyst noted, “[w]hile Snap continues to see a series of solid engagement trends (users, time spent & new product engagement), the revenue outlook clearly deteriorated as the quarter progressed (and only seems to have worsened since their 2H May pre-announcement at an industry conference).”
The company’s Board of Directors has authorized a stock repurchase program of up to $500 million of its Class A common stock.
Snap’s weak results and lack of guidance sent shares of peers like Meta Platforms Inc (NASDAQ:) , Alphabet (NASDAQ:), Twitter (NYSE:), and Pinterest (NYSE:) 2-7% lower.