SNAP reported a steady Q1 result with revenue of $1.36B, surpassing expectations. Due to uncertainty, several analysts lowered their inventory price targets.
Snap Inc (NYSE: SNAP) reported results for the first quarter on Tuesday and announced that it would not provide guidance for the second quarter.
SNAP reported first-quarter revenue of $1.36 billion, up 14%, higher than the street consensus estimate of $1.35 billion.
The company reported adjusted losses of 8 cents per share, exceeding the street consensus estimate of 13 cents per share.
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Several Wall Street analysts lowered their price targets.
Brad Erickson, capital market analyst at Royal Bank of Canada, maintained the industry performance rating with a target of $12.
Canaccord Capital Markets analyst Maria Ripps maintains a hold rating with a target price of $9, below $10.
Royal Bank of Canada Capital Markets: Snap's first-quarter revenue was roughly consistent with expectations, mostly offset by weak ranks and a lesser degree of Europe. The company's Daus meets prospects and guidance. EBITDA's cost discipline drives to substantial expectations.
So far, in the second quarter of 2025, management pointed to revenue headwinds and took advertisers affected by de Minimis exemptions as an example. Regarding the daily infrastructure costs for the quarter, the company is expected to approach the midpoint in the second quarter, with an estimated DAU of about 468 million.
Investors recognize that SNAP often loses its share in moments of macro weakness, and the report may strengthen these views, especially given these views Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google's Last week's tone was more balanced (also historically consistent).
In addition to the pain, investors also pass through the unresolved issues of how to think about regional exposure, i.e., Chinese advertisers, and the weaknesses of non-Chinese advertisers exposed by China's supply chain and de Minimis.
Erickson is interested in Snap's chances because it has attracted attention over time, but given that changes in its platform are moving slowly and the platform is underperforming in softer macro times, analysts lack arguments for more constructive arguments, but stocks are down.
Yuan Platform Company (NASDAQ: RMB) should be better because it has similar advertisers, which may fill in auction holes left by the most affected advertisers.
Erickson expects revenue to be $1.31 billion in the second quarter.
Canaccord Capital Markets: Compared to expectations, Snap's first-quarter results were stable, with Maus eclipsing 900 million for the first time, with gross revenue above consensus above consensus and profitability firmly above guidance.
Consistent with the past two quarters, advertising revenue growth slowed slightly but increased by about 9%, with DR revenue maintaining mid-year growth and accounting for 75% of total advertising revenue for the first time. The total number of positive advertisers grew by 60% in the first quarter, reflecting efforts to put more SMBs on the platform, while SNAP is increasingly focused on climbing spending for mid-sized advertisers.
With Snapchat+, other revenues have also brought another solid growth, now running interest rates at $600 million.
Snap expects a steady trend in progress. Global viewing content grew in the first quarter, reflecting on the ongoing investment in AI models to support better content rankings and personalization.
These new models can combine new trends and user interaction signals with the speed of previous models, which helps focus on the number of views on the post. For my AI, improving responsiveness has increased my number of AI Daus in the US by 55%.
SNAP does not provide formal second-quarter financial guidance in view of macro-related uncertainties. Management noted that a headwind has begun as a series of advertisers in the advertiser queue affected by changes in the minimum exemption has cut spending. The company does show that it is still developing quarterly.
Price action: SNAP shares closed 1.63% on Thursday to $7.83.
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| date | company | action | from | arrive |
|---|---|---|---|---|
| March 2022 | German Bank | Start coverage | purchase | |
| March 2022 | Benchmark | Start coverage | purchase | |
| February 2022 | Credit Suisse | persist in | Outperform the market |
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Analysts in this article warn that SNAP benefited as Meta and Google, the ad spending shift originally appeared on Benzinga.com
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