Snap: stock snaps - audience grows, but sales weak

(CercleFinance.com) - Snap, owner of Snapchat, reported disappointing quarterly results, causing its share price to plunge over 30% in early trading on Wall Street on Wednesday

The Santa Monica-based company reported a 10% increase in the number of active Snapchat users in Q4, reaching 414 million by the end of the year.


However, the increase in its audience was not reflected in its sales, which come mainly from advertising revenues, as the latter rose by just 5% to $1.36bn.

As a result, its net loss was only reduced to $248m, compared with $288m a year earlier.

CEO Evan Spiegel felt that the company had succeeded in laying a "solid foundation" for long-term growth, but his forecasts for 2024 disappointed the market.

Snapchat said it was aiming for sales growth of between 11% and 15% this year, but investors were hoping for better, with forecasts of between 14% and 16%.


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