Revenue
Earnings
The consensus estimate is for a loss of $0.01 per share in Q1 2023 which compares to an adjusted loss of $0.02 per share in Q1 2022. In Q4 2022, adjusted EPS fell 38% year-over-year to $0.14.
Points to note
Snap’s top line performance in Q4 was impacted by a challenging environment caused by macroeconomic headwinds, platform policy changes, and increased competition. Against this backdrop, the company saw a decline in its advertising business which in turn took a toll on revenue. Taking these factors into account, the company anticipates a 2-10% YoY decline in revenue for the first quarter of 2023.
Snap is focused on the growth of its global community. In Q4, the company saw daily active users (DAUs) grow across all its geographic regions to end the quarter at 375 million. Q4 DAUs were up 17% YoY. The company’s launch of new Snapchat+ features helped drive engagement during the quarter. It also benefited from the popularity of Stories and Spotlight. These trends are likely to have continued into the first quarter. Snap expects DAUs to range between 382-384 million in Q1 2023.
Another area of significant opportunity and investment is augmented reality (AR). In its Q4 report, the company said over 250 million Snapchatters engage with AR every day on average. Snap continues to invest significantly in this space with tools like Lens Studio and Camera Kit driving engagement. AR also has vast opportunity in areas like advertising and shopping.