Snap presents its balance sheet after hours: Losses rise, sales fall - experts surprised

Snap presents its balance sheet after hours: Losses rise, sales fall - experts surprised

According to a report by www.finanzen.net, the technology company Snap presented its balance sheet for the fourth quarter of 2023 after trading on Tuesday. The Snapchat mother reported an EPS of -0.15 US dollars and was once again in the red. A year ago, the company had lost $0.180 per share, while expert estimates had previously amounted to an EPS of -0.175.

The company's sales also did not meet market expectations. With revenue of $1.361 billion, Snap missed forecasts of $1.37 billion. For the full year 2023, sales were $4.606 billion, following analyst estimates of $4.62 billion. The loss per share was estimated at $0.82, narrowing from a loss of -$0.890 per share in the previous year.

Both the worse-than-expected financial results and the surprisingly high loss forecast for the current quarter resulted in Snap shares being deep red in trading on the NYSE and ultimately losing 34.61 percent to $11.41. These poor results could shake investor confidence in Snap and lead to a decline in its stock price. Competing platforms from Meta and Google as well as the dwindling number of users could continue to affect Snap's sales development. It remains to be seen whether Snap will be able to reverse negative financial results and regain investor confidence.