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Snap Shares Fall 14% as Co. Swings to Loss in 4Q

Dow Jones2023-02-01

Shares of Snap Inc. dived over 14% to $9.92 in Tuesday's after-hours session after the Snapchat app owner posted a fourth-quarter loss of $288.5 million.

Evan Spiegel, the company's chief executive, said "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."

The company said it wouldn't provide expectations for first-quarter revenue of adjusted EBITDA, "given uncertainties related to the operating environment."

After the bell, Snap reported a fourth-quarter loss per share of 18 cents on revenue of $1.3 billion. The loss included restructuring charges of $34 million, Snap said.

On an adjusted basis, the company reported fourth-quarter earnings per share of 14 cents.

In the year-ago period, the company reported EPS of 1 cent on revenue of $1.29 billion. On an adjusted basis, Snap reported EPS of 22 cents.

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