Companies /Communication Services

Snap Inc - Class A

NYSE: SNAP Internet Content & Information
$5.84
▲ $0.16 (+2.82%) today
Markets closed · 3:01am ET

Q1 2025 Earnings

Reported Apr 29, 2025, 4:11pm ET · SEC source
$-0.08
Miss −327.27%
EPS · est. $0.04
$1.4B
Beat +1.35%
Revenue · est. $1.3B
−3.9%
Trailing market
SNAP vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%0+6%+12%Apr 29Apr 30report 4:11pm ETearnings+0.9%−4.3%
−6%0+6%+12%Apr 29Apr 30earnings+0.9%−4.3%
SNAP −4.3%S&P 500 +0.9%
−6%0+6%+12%Apr 29Apr 30report 4:11pm ETearnings+1.5%−4.3%
−6%0+6%+12%Apr 29Apr 30earnings+1.5%−4.3%
SNAP −4.3%NASDAQ +1.5%
−6%0+6%+12%Apr 28May 7report 4:11pm ETearnings+1.2%+2.5%
−6%0+6%+12%Apr 28May 7earnings+1.2%+2.5%
SNAP +2.5%S&P 500 +1.2%
−6%0+6%+12%Apr 28May 7report 4:11pm ETearnings+1.8%+2.5%
−6%0+6%+12%Apr 28May 7earnings+1.8%+2.5%
SNAP +2.5%NASDAQ +1.8%
−12.43%
Day of report
−1.63%
Next session
+2.14%
One week
+3.02%
30 days

S&P 500 over the same 30 days: +6.88%.

Did SNAP Beat Earnings? Q1 2025 Results

Snap delivered a mixed first quarter for 2025, posting revenue of $1.36 billion, a 14.1% year-over-year gain that edged past the $1.35 billion consensus by 1.35%, yet falling well short on the bottom line with a loss of $0.08 per share against expectations of $0.04, a 327.27% miss that underscored the gap between topline momentum and profitability. The headline driver was the continued ascent of direct-response advertising, which grew 14% year-over-year and now accounts for 75% of total advertising revenue, while Snapchat+ subscriptions surged 75% to $152 million, signaling meaningful diversification away from brand advertising. Adjusted EBITDA more than doubled to $108.42 million, and the net loss narrowed sharply to $139.59 million from $305.09 million a year ago. The forward picture, however, carries uncertainty; Snap withheld formal Q2 revenue guidance citing macroeconomic headwinds and early-quarter advertising softness, a move that led some analysts to lower their fair value estimates for the stock, even as the company trimmed full-year adjusted operating expense guidance by $50 million to a range of $2.65 to $2.70 billion.

Key Takeaways
  • Direct-response advertising revenue grew 14% YoY, now contributing 75% of total advertising revenue
  • SMB client segment driving robust topline growth with total active advertisers up 60% YoY
  • Snapchat+ subscription revenue increased 75% YoY to $152 million with nearly 15 million subscribers
  • Global impression volume grew approximately 17% YoY driven by expanded Spotlight and Creator Stories delivery
  • Community growth to 460 million DAU and 900+ million MAU
  • Operating expense discipline with Adjusted Operating Expenses up only 7% YoY

“We surpassed an important milestone in Q1, with our community growing to over 900 million monthly active users.”

Snap CEO, on the earnings call

Forward Guidance & Outlook

Snap declined to provide formal Q2 2025 revenue guidance due to macroeconomic uncertainty and advertising headwinds experienced at the start of the current quarter. For full year 2025, the company updated cost guidance: Infrastructure cost per DAU maintained at $0.82–$0.87 per quarter (Q2 expected near midpoint with estimated 468 million DAU); other cost of revenue at 19%–20% of revenue; Adjusted Operating Expenses lowered to $2.650–$2.700 billion (down $50 million at midpoint from prior guidance); stock-based compensation lowered to $1.130–$1.160 billion (down $30 million at midpoint). The company remains optimistic about long-term prospects driven by ad platform improvements, advertiser base diversification, Snapchat+ subscription growth, and cost discipline, and believes it is well positioned to deliver meaningful positive Free Cash Flow and make further progress toward GAAP profitability.

SNAP YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$500.0M$1.0B$1.2B$1.4BRevenue$-136,674,892$-193,846,000Operating Income$-90,494,003$-139,587,000Net Income
$0$500.0M$1.0BRevenueOperating IncomeNet Income

SNAP Revenue by Segment

Advertising Revenue$1.2B+9.0%
Other Revenue$152.0M+75.0%

SNAP Revenue by Geography

North America$831.7M+12.0%
Europe$224.0M+14.0%
Rest of World$307.5M+20.0%

Figures from SEC filings and company reports. Not investment advice.