Snapchat Parent Co. Sees 64% YoY Increase in Revenue

Shares of Snap Inc. traded 62% higher after the camera and social media company reported FY/21 financial results that included a 64% YoY increase in revenue.

After U.S. markets closed for trading yesterday, social media company Snap Inc. (SNAP:NYSE) Snap Inc. (SNAP:NYSE), which operates the popular Snapchat camera application and platform, announced financial results for the fourth quarter and full year of 2021 ended December 31, 2021.

The company’s CEO Evan Spiegel remarked, “2021 was an exciting year for Snap and we made significant progress growing our business and serving our global community…The strength of our core business has enabled us to accelerate our investments in augmented reality, transforming the way that the Snapchat community experiences the world through our camera.”

The firm stated that during total revenue in FY/21 increased by 64% to $4.12 billion, compared to $2.51 billion in FY/20.

Snap stated that for FY/21, it posted a net loss in the amount of $488 million, which in noted was a 48% improvement versus the net loss of $945 million it recorded in FY/20.

The company highlighted that 2021 was its “second consecutive year of positive adjusted EBITDA with $617 million, and its first full year of positive operating cash flow and free cash flow of $293 million and $223 million.”

The firm listed that revenue in Q4/21 grew by 42% year-over-year to $1.3 billion, compared to $911 million in Q4/20.

Snap noted that in Q4/21, it recorded net income of $22.55 million, making it the first full quarter of positive net income since it became a public company. The company added that during Q4/21, adjusted EBITDA improved by 97% to $326.8 million, versus $165.6 million in Q4/20.

Snap commented on some of its ongoing operations and advised that “The Snapchat community is active, engaged and growing.”

The firm indicated that during Q4/21, daily active users (DAUs) were 319 million, which represented an increase of 54 million (+20% y-o-y) over the number of DAUs in Q4/20. The company pointed out that this marks the fifth quarter in a row where it has successfully increased DAUs by 20% or more in y-o-y comparisons.

The company stated that it continued to make significant investments in its augmented reality platform with its 18 New Year’s Eve Lenses having generated greater than 7 billion impressions.

The firm said that it also made investments in its content offerings and reported that “the number of Spotlight viewers subscribing to a Creator more than doubled relative to the prior quarter.” Some of the more notable

Spotlight creators and celebrities are syndicating Shows on Discover and were said to be reaching as many as 5 million Snapchatters through those Shows.

The company mentioned numerous campaigns which garnered the attention of over 50 million unique global Snapchatters. Standing out amongst the group was the firm’s partnership with Kim Kardashian West and Kris Jenner to launch the Kindness Spotlight Challenge, which Snap stated had generated the most submissions for a challenge to date, and a partnership with Mariah Carey to launch her hit song “All I Want for Christmas is You” which led to over 300 million views.

The company provided some forward guidance and advised that for Q1/22 it expects revenue will be in the range of $1,030 million to $1,080 million. Snap added that it estimates that its adjusted EBITDA will be approximately breakeven.

Snap Inc. is headquartered in Santa Monica, Calif., and describes itself in amazingly simple terms as a camera company. The company’s Snapchat is a camera application that helps people to communicate through short videos and images known as Snaps. The company’s claims that it contributes to human progress by creating a platform where people can live in the moment and express themselves all while learning and having fun.

Snap Inc. started the day Friday with a market cap of around $39.4 billion with approximately 1.61 billion shares outstanding and a short interest of about 3.2%. SNAP shares opened 44% higher at $35.27 (+$10.77, +43.96%) over Thursday’s $24.50 closing price. The stock traded between $34.10 and $40/48 per share and closed at $38.91 (+$14.41, +58.82%).

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