Snap's Q4 revenue beats estimates

Overview

• Social media firm's Q4 revenue rose 10% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q4 beat analyst expectations

• Company announced $500 mln stock repurchase program

Outlook

• Snap Inc did not provide specific guidance for Q1 2026 or full year 2026

Result Drivers

• REVENUE DIVERSIFICATION - Snap's revenue growth was driven by In-App Optimizations and Dynamic Product Ads, which saw significant year-over-year increases

• AR INVESTMENT - Snap's investment in augmented reality led to increased engagement, with AR Lenses used 8 billion times per day and over 450,000 developers building more than 5 million Lenses

• USER ENGAGEMENT - Snap deepened user engagement with new tools like Quick Cut and partnerships, including a global integration with Wix for SMBs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 34 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy."

• Wall Street's median 12-month price target for Snap Inc is $9.50, about 55.7% above its February 3 closing price of $6.10

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nBw2X00f1a

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