Shares of Snap (NYSE:SNAP) were brutalized in after-hours trading after the company reported earnings for its second quarter of Fiscal Year 2023. Earnings per share came in at -$0.02, which beat analysts’ consensus estimate of -$0.25 per share. However, sales decreased by 3.6% year-over-year, with revenue hitting $1.07 billion. Nevertheless, this beat analysts’ expectations by $10 million.
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Daily Active Users hit 397 million, which equates to a 14% increase compared to the same time last year. Furthermore, more than 400 monthly active users watched spotlight content, a 51% increase from a year ago, while total time spent watching tripled.
Looking forward, management now expects adjusted EBITDA for Q3 2023 to be between -$50 million to -$100 million. For reference, analysts were expecting an adjusted EBITDA of -$2.1 million. In addition, Snap anticipated revenue between $1.07 billion to $1.13B, which translates to growth of -5% to 0%.
Overall, Wall Street has a consensus price target of $10.84 on SNAP stock, implying 13.35% downside potential, as indicated by the graphic above.
