Snap down after-hours following earnings
Snapchat reported earnings that topped street estimates. posting $769.6M in revenue, versus $744M in expected revenue. Yahoo Finance’s Jared Blikre joins to break down the key metrics.
Video transcript
SEANA SMITH: We want to get to some breaking news. Snap is out with its earnings results. Shares off just over 3% here after hours. Jared Blikre has the numbers for us. Jared.
JARED BLIKRE: That's right. Headline numbers all pretty good. When you dig in to the report, though, there are a couple of troubling things. I'll get to those in a second. But first, those key headline number. So beats on both the top and bottom lines. Revenue coming in at $769.6 million. That's up 66% year over year. And the estimate was for lower at $744 million, a beat there. And then they did have an adjusted EBITDA loss of $1.71 million. That's much less than the estimated loss of $55.9 million.
In fact, when you go to the adjusted EPS calculation, it comes out to 0 because of the rounding. Now, free cash flow also strong. It was 126 million. And guess what? This is a first for them. Haven't done that as a public company just yet. So they could clear that milestone. The estimate, by the way, for that free cash flow was a negative 4.78 million. Now here's where you get into some tricky numbers here that could be providing investors a little bit of caution.
Daily active users, the headline number is good. $280 million, that beat estimates. But when you break it up by region around the world, North American fell-- North America fell short daily active users here, 93 million. The estimate was for a little bit more. And then they also missed on the projections for the average revenue per user around the world, except for in North America. Nevertheless, the stock's off about 2% in after hours trading, guys.
