BY J. CLARA CHAN | HollywoodReporter.Com
The parent company of Snapchat bounced back after an earnings miss last quarter.
Snap reported $1.3 billion in revenue during Q4 to close out 2021, with daily active users reaching 319 million.
The parent company of Snapchat forecast it would reach $1.1 billion to $1.2 billion in revenue for the quarter, while Wall Street analysts predicted revenue would reach $1.2 billion, according to Yahoo Finance. Last quarter, Snap missed the high end of its earnings projections by $3 million, which Snap CEO Evan Spiegel attributed to privacy changes on Apple’s iOS platform, the pandemic and supply chain delays negatively impacting Snap’s advertising business. But with $22.5 million in net income during the quarter, Q4 was the first quarter Snap reported positive net income since going public in 2017.
“We faced some fresh challenges in 2021 but posted strong results, reflecting substantial progress on our journey to sustainable growth and positive cash flow generation,” Spiegel said in prepared remarks Thursday.
Looking ahead to Q1, Snap has cautioned that the iOS privacy changes will continue to have an impact on the company’s ad business.
“While we made significant progress in navigating the iOS platform changes in Q4, we believe that it will take at least a couple more quarters for our advertising partners to build full confidence in our new measurement solutions,” Derek Anderson, Snap’s chief financial officer, said in prepared remarks.
As for its user base, Snap has growth outside of North America and Europe, where DAUs grew by 5 million and 8 million, respectively, during Q4. The “rest of the world,” as Snap described it, grew by 40 million and now accounts for 140 million of Snap’s total 319 million DAUs.
Elsewhere, the tech and social platform has continued to forge ahead with unscripted content; its unscripted slate for this year includes shows featuring Steph Curry, Addison Rae and Ryan Garcia, as well as an original show for U.K. audiences with the British boxer Anthony Joshua. Last month, Snapchat also renewed its content deals with Disney, ViacomCBS and NBCUniversal.
In his prepared remarks, Spiegel also noted Snapchat’s focus on adding new games to its platform as part of its deal with Voodoo Games, which will build at least 20 games for Snapchat this year. According to Spiegel, another games developer, Mojiworks, has reached almost 100 million users across its two games on the platform.