Snap has sunk 14% in the ‘after hours’ market after presenting results that have clearly disappointed the market.
The company registered a net loss of 288 million in the fourth quarter compared to the positive profit of 23 million dollars of the previous year. Quarterly losses include restructuring costs of 34 million. Adjusted earnings per share came in at 14 cents, beating consensus estimates of 11 cents.
Los revenue for the period reached $1.3 billion compared to 1,298 million a year ago, while the Adjusted EBITDA was $233 millionfalling from 327 million in the fourth quarter of 2021.
The company’s operating cash flow was $125 million, up from $186 million in the same period last year, and free cash flow was $78 million, up from $161 million previously.
In the whole of the year, revenue increased 12% to $4.6 billiony the net loss was 1,430 millionincluding restructuring expenses of $189 million, and compared to the red numbers of $488 million in 2021.
The company has said it has registered its third consecutive year of positive adjusted EBITDAat $378 million, and the second year of positive operating cash flow and free cash flow, at $185 million and $55 million, respectively.
In a letter to investors, Snap explained that a weakening economy, increased competition from other social media platforms and “platform policy changes” continued to hurt its business in the fourth quarter.
Gloomy Forecasts
Snap announced on Tuesday that current quarter revenue could decrease by up to 10%which also motivated the strong cuts in their titles.
The company will celebrate its investor day on February 16th to detail his plan for moving forward after announcing in August that he would lay off 20% of his workforce and suspend experimental projects, such as a camera drone, to cut costs.
