Shares in Snap, the parent company of Snapchat, are down 14.97% in extended trading after the social media company reported fourth-quarter revenue that fell short of analyst estimates.
“We ended a challenging 2022 with 375 million Daily Active Users, 12% year-over-year annual revenue growth, and positive full-year Free Cash Flow,” said Evan Spiegel, CEO.
“We continue to face significant headwinds as we look to accelerate revenue growth, and we are making progress driving improved return on investment for advertisers and innovating to deepen the engagement of our community.”
In a call with analysts Spiegel added: “It seems our advertisers are really watching their spending.”
The company said it would not be providing forward guidance. “Given uncertainties related to the operating environment, we are not providing our expectations for revenue or adjusted EBITDA for the first quarter of 2023.”
Annual Financial Summary
• Revenue increased 12% to $4.6 billion in 2022, compared to the prior year.
• Net loss was $1,430 million in 2022, including restructuring charges of $189 million, compared to
$488 million in 2021.
• Third consecutive year of positive Adjusted EBITDA with $378 million in 2022.
• Second full year of positive operating cash flow and Free Cash Flow of $185 million and $55 million,
Q4 2022 Financial Summary
• Revenue was $1,300 million, compared to $1,298 million in the prior year.
• Net loss was $288 million, including restructuring charges of $34 million, compared to net income of
$23 million in the prior year.
• Adjusted EBITDA was $233 million, compared to $327 million in the prior year.
• Operating cash flow was $125 million, compared to $186 million in the prior year.
• Free Cash Flow was $78 million, compared to $161 million in the prior year.