Snap Stock Slides After it Misses Expected Earnings

Snap Inc. stock dropped more than 10% on Tuesday after it reported earnings that missed analysts expectations for Q4.

The self-described camera company, based in Santa Monica, reported revenue of $561 million versus the expected $563 million. The company's reported cash flow remains negative despite improvement over the year prior. The company said it lost $240.7 million, or 17 cents per share, compared with FactSet estimates of a 12-cent loss per share.


It reported a full year increase of 17%, or an additional 31 million, daily active users in 2019 compared to last year. The company, which is the maker of the Snapchat app, said it continues to invest in augmented reality platforms with 75% of its community engaging with AR on average daily. Snap also recently launched its new Bitmoji TV on Feb. 1, capitalizing on the popular Bitmoji Stories.

Snap reported that it expects revenue in Q1 of 2020 to be between $450 million and $470 million. That's above analysts expectations of $462 million.

Snap is up roughly 160% from last year, with a 52-week high $19.75 from its low of $6.80.

During Tuesday's earnings call, CEO and co-founder Evan Spiegel told analysts that the company was continuing to invest in its curated Discover page content.

"There are really interest shifts in content consumption," from television to mobile, Spiegel said. "Content hasn't caught up to this behavior shift (yet)."

Short-form video has taken off, especially with Gen Z, with youths moving into houses in Los Angeles, for example, specifically to generate TikTok videos as sponsored social media influencers. Meanwhile, soon-to-be launched, Quibi, or "quick bites," founded by Jeffrey Katzenberg and with CEO Meg Whitman is betting that bespoke episodic weekly videos that are under 10 minutes will take off.

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This week's virtual pitch showcase featured emerging real estate tech startups HomeOpenly, VHomes, and JoyHub.

Brad Inman, founder of Inman, the leading real estate news source along with Spencer Rascoff, co-founder, executive chairman at dot.LA will be leading the discussion as the two leading active investors and experts in this space.

Startup Pitch Showcase: Real Estate Tech youtu.be

HomeOpenly helps our users to make the opportunity of homeownership transparent, affordable, and an open experience. HomeOpenly is an innovative and young Internet company that designs, builds, and maintains a series of online marketplace solutions with focus on home search, automated valuation modeling (AVM), home buyer's and seller's representation services, mortgage origination, refinance, home insurance, renovation, design, staging, home inspections, home security, moving, home maintenance, title, escrow, cash offer stand-in programs, home warranty, and other real estate products and services. HomeOpenly utilizes Open Systems Design and Privacy by Design principles behind the unbiased information we provide and the value-added Open Marketplace™ that we maintain.

VHomes is disrupting the antiquated motel / affordable housing industries. A proptech startup that strategically identifies distressed and vacant housing opportunities, leveraging these assets and turning them into nightly, weekly, or monthly budget rental options. By providing travel or living options to those that need it most we are able to provide significant impact for our customers' lives. VHomes provides the best budget accommodation in the Sun Belt United States.

JoyHub is developing an open platform to connect and automate existing multifamily operator systems to improve operating performance, increase revenue opportunities and enhance resident engagement.

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Here are the latest headlines regarding how the protests around the killing of George Floyd are impacting the Los Angeles startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for the latest update.

Today:

  • Disney will donate $5M to Social Justice Groups
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