Snap Inc. reported fourth-quarter results that exceeded expectations on key metrics, leading to a surge in after-hours trading. The company posted an EPS of $0.16, significantly beating the anticipated loss of $0.04 per share. Revenue came in slightly above expectations at $1.56 billion, driven by a 14% year-over-year increase in ad revenue. The number of daily active users reached 453 million, with a forecast of 459 million for the first quarter of 2025. The rebound in digital ad spending has been a crucial factor in Snap's recent performance, with the number of advertisers more than doubling in the fourth quarter.
Despite the strong earnings, Snap's mixed forecast for the first quarter of 2025 has tempered investor enthusiasm. The company projects revenue between $1.325 billion and $1.360 billion, reflecting cautious optimism about the continued recovery of its ad business. Snap also plans to increase its headcount by 8-10% in 2025, indicating confidence in its growth trajectory. Improvements in ad targeting and performance are expected to further bolster the company's ad business revival.
As of 6:41 am on February 5th, Snap's stock is trading at $11.38, down 1.9% from its previous close of $11.60. The stock experienced a high of $11.71 and a low of $11.185 during the trading session.