Snap swung to a year-over-year profit on revenue of $1.298 billion in the fourth quarter

2022-06-04 0 By

Snap, the parent company of the messaging app Snapchat, today announced its financial results for the fourth quarter and full year of fiscal 2021.Snap reported fourth-quarter revenue of $1.298 billion, up 42% from $911 million a year earlier.Net income was $22.6 million, compared with a net loss of $113 million in the same period last year, representing an increase of 120 percent;Adjusted non-GAAP net income was $359 million, compared with adjusted net income of $136 million in the year-ago period.Snap’s fourth-quarter revenue and adjusted earnings per share were better than Wall Street analysts had expected, and its revenue outlook for the first quarter of fiscal 2022 beat expectations, sending its shares up more than 47% after hours.Key FOURTH-quarter results: For the quarter ended Dec. 31, Snap reported net income of $22.6 million and diluted earnings per share attributable to common shareholders of 1 cent, significantly better than a year earlier.In the fourth quarter of fiscal 2020, Snap reported a net loss of $113 million and a diluted loss per share attributable to common shareholders of 8 cents.Excluding certain one-time items (not under US GAAP), Snap reported adjusted net income of $359m and adjusted diluted earnings per share of 22 cents in the fourth quarter, also better than a year earlier and beating analysts’ expectations.Snap reported non-GAAP adjusted net income of $136 million, or 9 cents per diluted share, in the fourth quarter of fiscal 2020.On average, 25 analysts had expected Snap to earn 10 cents a share in the fourth quarter, according to Yahoo Finance.Snap reported revenue of $1.298 billion in the fourth quarter, up 42 percent from $911 million a year earlier and beating analysts’ expectations.On average, 34 analysts had expected Snap to report revenue of $1.2 billion, according to Data provided by Yahoo Finance.Snap’s fourth-quarter adjusted EBITDA profit was $327 million, up 97% from $166 million a year earlier.Snap’s total costs and expenses were $1.323 billion in the fourth quarter, compared with $1.009 billion a year earlier.Cost of revenue was $449 million, up from $386 million a year ago.R&d spending was $434 million, up from $318 million a year earlier;Sales and marketing expenses were $245 million, up from $158 million a year earlier;General and administrative expenses were $194 million, up from $147 million a year earlier.Snap’s fourth-quarter operating loss of $25.1m narrowed 74 per cent from an operating loss of $97.2m a year earlier.Snap generated $186 million in cash from business operations in the fourth quarter, compared with $52.5 million a year earlier, representing a 453% increase.Snap’s free cash flow was $161 million in the fourth quarter, compared with negative $75.9 million a year earlier, representing a 333% year-over-year increase.Snap had 319 million daily active users (DAUs) in the fourth quarter, up 54 million from a year earlier and 20% from a year ago.Snap has seen year-on-year growth of 20% or more in daily active users in each of the past five quarters.Snap posted sequential and year-over-year growth in daily active users in North America, Europe and the rest of the world in the fourth quarter.Key FISCAL 2021 results: For the full fiscal year 2021, Snap reported revenue of $4.117 billion, up 64% from $2.507 billion in fiscal year 2020;Net loss of $488 million, a 48 percent narrowing from $945 million in fiscal 2020;Diluted loss per share attributable to common shareholders was 31 cents, a 52% decrease compared to fiscal year 2020 diluted loss per share of 65 cents;Excluding certain one-time items (not in accordance with US GAAP), adjusted diluted earnings per share were 50 cents, compared with adjusted diluted earnings per share of 16 cents in fiscal 2020, representing an 895% year-over-year increase.Snap’s cash from business operations for the full year was $293 million, compared with $168 million a year earlier, representing a 275 percent increase.For the full year, Snap’s free cash flow was $223 million, compared with minus $225 million a year earlier, representing a 199% year-over-year increase.Outlook: Snap expects revenue of $1.03 billion to $1.08 billion in the first quarter of fiscal 2022, with the median ($1.055 billion) beating analysts’ expectations.On average, 20 analysts expect Snap to report revenue of $1.02 billion in the first quarter, according to data provided by Yahoo Finance.Snap also expects to break even on adjusted EBITDA in the first quarter of fiscal 2022.Stock move: Snap shares fell $7.57, or 23.60 percent, to close at $24.50 in regular trading on the New York Stock Exchange.In subsequent after-hours trading, Snap shares jumped $11.56, or 47.18%, to $36.06 by 4:36 p.m. Et on Thursday (5:36 a.m. Friday in Beijing).Over the past 52 weeks, Snap’s high was $83.34 and its low was $24.32.