| Ticker | Status | Jurisdiction | Filing Date | CP Start | CP End | CP Loss | Deadline |
|---|
| Ticker | Case Name | Status | CP Start | CP End | Deadline | Settlement Amt |
|---|
| Ticker | Name | Date | Analyst Firm | Up/Down | Target ($) | Rating Change | Rating Current |
|---|
Snap Inc (NYSE:SNAP) shares were climbing Friday after the company reported higher-than-expected earnings for its first quarter.
The results came amid an exciting earnings season. Here are some key analyst takeaways from the release.
Analyst Eric Sheridan reiterated a Neutral rating while raising the price target from $13.50 to $16.
Snap reported strong first-quarter revenue growth of 21% year-on-year, beating Street expectations, "driven by both direct response (+17% YoY driven by improvements to the ad platform) and brand (+12% YoY)," Sheridan wrote in a note.
He added that the company's adjusted EBITDA of $46 million was "meaningfully higher" than guidance.
Total DAU (daily active user) growth remained robust in the quarter, with net additions of more than 8 million, the analyst stated. The company also guided to DAU net adds of 9 million for the second quarter, he further said.
Analyst Josh Beck maintained an Outperform rating while lifting the price target from $15 to $16.
Snap recorded revenues of $1.195 billion, representing 21% growth, which surpassed consensus, while also guiding to higher-than-expected growth of 15% to 18% year-on-year for the second quarter, Beck said.
The company attributed the slowdown in revenue growth to "tougher comps y/y and up to 3pts of seasonality impact from Ramadan and leap day in 1Q24," he added.
"Significant platform highlights included Snapchat+ subscribers 3x y/y beyond 9M subscribers and spotlight time spent +125% y/y," the analyst further stated.
Check out other analyst stock ratings.
Analyst Brian Nowak reaffirmed an Underweight rating while raising the price target from $11 to $12.
Snap's higher-than-expected revenue growth was driven by "growth across both direct response and brand ads," while advertisers saw a 75% improvement in purchase conversions, Nowak said.
The company's results highlight "solid execution to start the year with improved traction amongst SMB advertisers," the analyst wrote.
The "strong adoption of conversion API product Engagement remains critical," as the company aims to reengage more high-monetizing users in North America and "drive personalization through better content ranking models," he added.
Analyst Doug Anmuth reiterated an Underweight rating while lifting the price target from $11 to $13.
While Snap's results indicated broad-based strength, which drove revenue upside, growth is expected to decelerate, Anmuth said in a note.
"Overall, the macro backdrop stabilized, while enhancements to the ad stack drove increased spending," the analyst wrote. He added, however, that Snap's results "have historically been choppy and we are hesitant to extrapolate from one-quarter of strong results."
Analyst Jason Helfstein maintained a Perform rating on the stock.
Snap reported revenues 7% higher than Street estimates, on higher-than-expected ARPDU (average revenue per daily user), Helfstein said. "While two-year accelerated 500bps vs. 4Q to +7%, SNAP guided 2Q +6%, suggesting lack of confidence following 1Q performance," he added.
"Furthermore, engagement remains weak, with NA/EU flat sequentially, as all growth continues to be in ROW which has weaker monetization," the analyst wrote.
Analyst Rohit Kulkarni reiterated a Neutral rating, while revising the price target to $15.
"Snap’s clean beat 1Q results and upbeat 2Q guide reinforced our near-term thinking, as we held an incremental positive bias heading into earnings," Kulkarni wrote in a note.
"Snap’s progress in attracting SMB advertisers and growing its DR business deserves applause, and recent macro recovery in brand-related ad spend seems to be benefiting Snap," he added.
The analyst stated, however, that the company's AI infrastructure investments continue to be elevated, impacting operating and gross margins.
Analyst Thomas Champion maintained a Neutral rating and price target of $15.
"Re-working the DR product is having an impact and perhaps most impressive, active SMB advertisers were +85% y/y," Champion said.
"All-in, a better 1Q, but 2Q revenue guide was in-line with our forecast and SNAP remains the most expensive name in social," he added.
Analyst Brian Pitz reaffirmed an Outperform rating and price target of $20.
"Green shoots of a positive ad inflection are here, with ad revenue growth accelerating to 15.7% from 1.8% in 4Q23, the fastest growth rate since 1Q22," Pitz said. He added, however, that the company is yet to benefit from growth in North America.
"Engagement should rise for lapsed users while organic growth should gain momentum," the analyst wrote.
He further stated that Snap could grow advertising revenues by double digits to mid-teens in 2024 and beyond.
Analyst Mark Zgutowicz reiterated a Hold rating on the stock.
"We were encouraged with SNAP's SMB customer progression in 1Q, reported up +85% y/y," Zgutowicz wrote in a note.
"While this number is a bit ambiguous without an understanding of its SMB base and average revenue, it may suggest SNAP's several SMB revenue partnerships are starting to bear fruit," he added.
Analyst Andrew Boone maintained a Market Perform rating on the stock.
Snap's second-quarter guidance implies a sequential deceleration due to tougher comps and seasonality factors, which could prove to be "conservative," Boone said.
"While we are incrementally positive after Snap's results, comps are likely to become tougher in 2H24 as Snap laps the growth of Snapchat+ and results have historically been volatile as we await greater consistency," he added.
SNAP Price Action: Shares of Snap had risen by 27.72% to $14.56 at the time of publication on Friday.
Photo: Shutterstock
Posted In: SNAP
